Integrated steelmaker Cleveland-Cliffs is pushing back the reline of one of its Indiana blast furnaces by one year to 2026.
Cliffs chief executive Lourenco Goncalves today said the condition of the blast furnace had been reassessed, allowing for the delay in the capital intensive investment.
He added that the company's Middletown, Ohio, blast furnace is set to be relined in 2027, though that could extend to 2028 depending on its condition.
Cliffs has started charging a $40/short ton surcharge for its flat steel products produced using hot briquetted iron (HBI) from its Toledo, Ohio, plant, with Goncalves saying it was to help pay for initiatives to reduce carbon. He said the added cost should be passed on by customers like automotive companies to the customers at minimal additional overall cost on the vehicle.
The construction of the 70,000st non-oriented electrical steel expansion at Cliffs' Zanesville, Ohio, mill has been completed, allowing the company to supply more electrical steels into the growing electric vehicle market.
Goncalves also noted that in recent months the solar industry has become a customer for Cliffs' galvanized steel, calling it "the largest growth area for us in terms of demand."
Volumes are expected to decrease in the third quarter as typical summer automotive shutdowns, particularly in July, weigh on Cliffs' shipments.
