Cliffs suspends Toledo HBI construction on virus

Market: Metals
20/03/20

Cleveland-Cliffs today suspended construction at its Toledo, Ohio, hot briquetted iron (HBI) plant after guidelines laid out by the governor of Ohio on the coronavirus.

The 2mn t/yr plant was expected to begin production in the first half of 2020.

Cleveland-Cliffs plans to continue monitoring the situation before restarting construction. All other iron ore mining and steelmaking facilities are still in active operation.

As the number of coronavirus cases has grown, pressure has mounted across the country for companies to take preventative steps including suspending operations. Automakers Ford, General Motors and Fiat-Chrysler shut down all of their North American operations on 18 March through the end of the month.

The American Iron and Steel Institute yesterday called on the federal government to list steel mills as "essential" operations, allowing them to stay open in spite of wider restrictions by local governments to shutdown.

The Toledo HBI plant, when active, is expected to ship to steelmakers in Indiana, Ohio, Kentucky, Illinois, and even to more southern markets such as Arkansas, and Mississippi, closer to competitor Voestalpine.

Cliffs finalized its $1.1bn acquisition of Ohio-based AK Steel last week.

In its latest release, the company anticipated between 20mn-20.5mn gross ton (gt) of iron ore pellet sales in 2020, including roughly 1.5mn direct reduced-grade pellet for Toledo, all of which is up from the 19.4mn gt sold in 2019.

By Zach Schumacher

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