Posted on 12/22/2015 5:07:48 AM PST by thackney
United States Steel Corp. has put on hold the construction of an electric arc furnace at its Fairfield Works in Birmingham, Ala.
U.S. Steel said in a statement Monday afternoon that the decision was made due to the poor oil and gas market, which is a major customer of steel. It specifically cited low oil prices and a cut to the number of rigs operating in the U.S.
"The company continues to feel the effect of these energy market conditions, along with low steel prices and continued high levels of imports," U.S. Steel said in a statement.
The $230 million project to build the electric arc furnace was to have helped the Fairfield facility to shift from its traditional blast furnace to the new technology, which U.S. Steel said is more cost effective. It was to get $11.3 million in tax breaks from local officials.
There was no specific time line as to when the electric arc furnace might be built, other than to say when market conditions improve.
Continuing to operate will be the Fairfield pipe mill, its #5 coating line and a hot-dip galvanizing joint venture in Mississippi, as well as steelmaking in Pennsylvania, Michigan and Indiana, the company said.
New labor deal won’t prevent U.S. Steel layoffs
http://fox2now.com/2015/12/21/labor-deal-may-prevent-u-s-steel-layoffs/
A new contract deal between U.S. Steel and the United Steelworkers Union won’t stop temporary layoffs at the Granite City facility. The mill is being idled by U.S. Steel.
A U.S. Steel spokesperson says Granite City workers are covered under the new contract deal.
But they are still facing layoffs because of the idling.
About a month ago, U.S. Steel officially announced that it was going to idle the Granite City facility.
When U.S. Steel made that announcement just before Thanksgiving, the company said the mill was being idled because of declining customer demand, fluctuating oil prices, depressed steel prices and unfairly traded imports.
This is the direct result of Obama administration indifference to Chinese steel dumping and the snails pace of the World Trade Organization legal process.
They have argued and got protective tariffs and quotas from "cheap" Japanese steel, saying that Japan is exporting "below cost" via gov't subsidies. I doubt that's the problem. We bombed their steel factories into dust in WWII and they were replaced with more modern technology. Some or our plants use 1890's technology and they are using CYA techniques to prevent competition. Time to bite the bullet and realize you need to upgrade your plants...without excuses.
Perhaps even more directly to the oil industry slow down.
Not only in the US, but the significant decrease in steel orders worldwide from the Energy industry.
What were your expectations of oil price recovery a year ago? I know we have gone far past my expectations from then.
Baltic Dry Index at historic lows ... global economy is slowing to dangerous levels ... war is next ...
The price is lower than I would have expected. I didn’t see the success that fracking brought to the table. However, my guess is that the tree huggers are really going to make life difficult on that front and Obozo is only doing lip service to off-shore leasing. That’s the supply side. The demand side will continue to increase despite rising MPG ratings. Electric cars are still in their infancy, but rising incomes in China and India are going to outstrip supplies for quite some time. End result: my guess is rising prices for distillate fuels.
The Chinese steel dumping predates the oil industry slow down, the WTO drags out their rulings, and the Obama administration which has the ability to level the playing field for US steel makers could care less.
This country desperately needs new leadership that puts American interests first and this is a prime example.
As the dark lord said, "electricity prices will necessarily skyrocket".
And the chickens will come home to roost.
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