Steel Mills
Algoma Extends Iron Ore Purchase Agreement with U.S. Steel
Written by Laura Miller
October 3, 2023
Algoma Steel Group has extended its iron ore purchase agreement with U.S. Steel for another two years.
The contract extension should provide the Canadian steelmaker with enough ore to cover its needs before making its final transition to electric-arc furnace (EAF) steelmaking next year.
Algoma currently has two blast furnaces (BFs): The No. 7 BF has a daily capacity of 8,400 tons of iron. The No. 6 BF has a capacity of 3,000 tons of iron per day but is idle, according to SMU’s blast furnace status table.
As you will recall, Algoma is transitioning away from steelmaking via the blast furnace route. It is currently building two EAFs at its campus in Sault Ste. Marie, Ontario. The EAF project is on track for commissioning late in 2024.
Algoma said in a statement on Tuesday, Oct. 3, that the new contract with the Pittsburgh-based steelmaker and iron ore miner includes an option to extend it for a third year “solely at Algoma’s discretion.”
“We are excited to extend our partnership with U.S. Steel, which we believe not only reinforces our strong collaboration but also aligns with our broader mission of transitioning to more sustainable steelmaking practices,” Algoma CEO Michael Garcia commented.
“We believe that the extension of this agreement provides the foundation for a reliable supply chain and uninterrupted access to essential raw materials to meet our production capacity and service the demands of our valued customers throughout North America,” he added.
Garcia recently spoke at an industry conference, elaborating on the steelmaker’s switch to greener steelmaking.
Laura Miller
Read more from Laura MillerLatest in Steel Mills
Nippon won’t import slabs to US if U.S. Steel deal goes through
Nippon Steel has affirmed that if its $14.9-billion bid for U.S. Steel proves successful, the Japanese steelmaker will not import overseas-produced slabs to the US.
AISI: Raw steel production falls to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.
AISI: Raw steel production edges back up
Domestic raw steel production recovered last week, after slipping the week prior, according to the latest American Iron and Steel Institute (AISI) data. Weekly production remains at some of the lowest levels recorded this year.