US beam makers edgy over ArcelorMittal’s Canada mill plan
Dec 31, 2007 | 11:20 AM
| Frank Haflich
The North American structural steel market is bracing for a new player whose presence seems sure to influence this industry's future course, as ArcelorMittal SA looks to build its first beam mill in Canada.
ArcelorMittal said in December that, as part of an effort to "develop a sustainable Canadian steel business," it would spend $380 million to construct an 800,000-ton-a-year beam mill in Contrecoeur, Quebec, near Montreal. The mill would begin production in early 2010.
This would be part of a restructuring that would also result in the consolidation of ArcelorMittal's Canadian flat-rolled operations in Hamilton, Ontario, where it's current Dofasco operation is located. But it could also result in initial job losses at Contrecoeur as its hot- and cold-rolled mills are due to be taken down early next year.
Not surprisingly, the decision by the world's largest steelmaker—which on a worldwide basis is also a major source of structurals—to enter North American beam production has grabbed the attention of domestic mills, distributors and other parts of the beam market. Buoyed by strong non-residential construction demand and a steep cutback in imports this year due to the weak dollar, wide-flange beams avoided the pricing slumps that plagued flat-rolled products in 2007. They rose a minimum of $117 a ton in 2007, with another $25-a-ton increase slated for January.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.