New steel capacity
In the flat-rolled steel sector, the combination of two major expansions and a greenfield project is expected to increase demand for ferrous scrap by more than 440,000 tons per month.
Steel Dynamics Inc is building a 3-million-tons-per-year mill in Sinton, Texas, and expects to produce 2-2.3 million tons in 2022.
Nucor Corp’s mill in Gallatin, Kentucky, is increasing its capacity to 3 million tpy from 1.6 million tpy and NorthStar BlueScope in Delta, Ohio, is increasing its capacity to 3.1 million tpy with an additional 900,000 tpy.
While kinks are still being worked out, all three investments should be fully ramped up by the end of the second quarter.
The three combined could increase scrap demand by more than 440,000 tons per month - creating upside in the second half of the year.
“This will put upward pressure on...