US can absorb Correnti’s output—for now: IHS

Mar 26, 2013 | 03:39 PM | Catherine Ngai

Tags  Big River Steel, John Correnti, Nucor, U.S. Steel, steel, cold-rolled steel, hot-rolled steel, flat-rolled steel IHS Global Insight

NEW YORK — The U.S. steel market could likely absorb the added capacity of John D. Correnti’s proposed 1.7-million-ton-per-year steel project in Osceola, Ark., a group of industry analysts said, but the domestic sector could see its margins disappear if joined by other new projects not already in development.

"The steel industry can handle the addition of Big River Steel (LLC), both Phase I and Phase II, from a capacity perspective," analysts at Lexington, Mass.-based IHS Global Insight Inc. wrote in an economic analysis of Correnti’s proposed $1.1-billion mill.

"However, if any other major facilities, other than projects already announced, were to be added to the U.S. steel stock, the industry would quickly find itself in a highly competitive, zero-sum environment," IHS warned in its report, discussed March 25 at a joint Arkansas Senate and House committee meeting.

Not all steel produced at the proposed mill would be received by the market the same way, according to the IHS report, obtained by AMM.....

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