Steel Dynamics To Stop Operation Of The Hot Rolled Coil Mill
Steel NewsDate: 18-07-2023 by: Nhu Quynh
On July 7, 2023, Steel Dynamics announced an unplanned outage of the hot-rolled coil mill at Sinton Texas Flat Roll Steel Mill. With this temporary shutdown, it is expected to restart before July 30, 2023. The cause of the outage was a wheel cutter failure on July 1, 2023. During the shutdown of the hot rolling mill, the cold rolling mill and flat steel lines are still operating as usual.
The factory had a positive pre-tax profit with stable operations in the second quarter of 2023. It is expected that during the hot-rolled coil downtime, the additional cost to fix the problem will be less than $1 million.
Steel Dynamics - The most significant domestic steel producer in the US
With annual steel production, recycling capacity, and facilities throughout the United States and Mexico. Steel Dynamics is one of the major domestic steel producers in the US market. Steel Dynamics' main products include hot-rolled coil, cold-rolled coil, bar steel, shape steel,... In addition, the company also manufactures liquid iron and processes and sells ferrous and non-ferrous scrap.
Predictions about the future
In the press release about the suspension of the hot-rolled coil mill that Steel Dynamics put out, there are some predictions about the situation of the economy and the steel industry market. These statements are effective as of the press release date and are indicative based on the current economic situation. Some factors that could cause such forward-looking statements to turn out differently than anticipated include:
(1) domestic and global economic factors.
(2) global steelmaking overcapacity and imports of steel, together with increased scrap prices.
(3) pandemics, epidemics, widespread illness, or other health issues, such as COVID-19 or its variants.
(4) the cyclical nature of the steel industry and the industries we serve.
(5) volatility, significant fluctuations in prices and availability of scrap metal, scrap substitutes, and supplies, and our potential inability to pass higher costs on to our customers.
(6) cost and availability of electricity, natural gas, oil, or other energy resources are subject to volatile market conditions.
(7) increased environmental, greenhouse gas emissions and sustainability considerations or regulations.
(8) compliance with and changes in environmental and remediation requirements.
(9) significant price and other forms of competition from other steel and aluminum producers, scrap processors, and alternative materials.
(10) availability of an adequate source of supply of scrap for our metals recycling operations.
(11) Cybersecurity threats and risks to our sensitive data and information technology security.
(12) The implementation of our growth strategy.
(13) litigation and legal compliance.
(14) unexpected equipment downtime or shutdowns.
(15) Governmental agencies may refuse to grant or renew some of our licenses and permits.
(16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility.
(17) the impacts of impairment charges.
Benefits of importing hot-rolled coil from Vietnam
Vietnam's steel industry is considered to have a solid growth rate in the region; so far, it has risen to the 13th position in the world. This is a remarkable achievement for Vietnamese steel on the world steel industry map. Currently, the two largest hot-rolled coil manufacturers in Vietnam are Formosa Ha Tinh and Hoa Phat Group.
Thanks to free trade agreements (FTA) such as CPTPP, EVFTA,... they have created a springboard to promote the development of Vietnam's steel industry like a storm. In addition, the core is hot-rolled coil enterprises in Vietnam that have constantly improved and diversified many product lines to help meet the needs of the market.
In addition to the advantages of trade policy, the cost of steel production by Vietnamese enterprises is also lower than that of foreign enterprises. The majority of hot-rolled coil products are produced from iron ore, and because we are a country with solid mineral potential, we do not have to import input materials, thereby contributing to reducing manufacturing costs.
With the benefits mentioned above, foreign importers who choose to import hot-rolled coil from Vietnam receive quality products and have more reasonable costs compared to other countries. If you need to import hot-rolled coil from Vietnam, don't hesitate to get in touch with us here.
