NEW YORK U.S. Steel Corp. is considering a direct-reduced iron (DRI) joint venture with Republic Steel in Lorain, Ohio.
We are...working with Republic Steel on a joint study for a potential DRI joint venture that would be located at Lorain and primarily feed the new (electric arc furnace) that they are constructing there. Phase one of the study was completed last year and were well into the second phase of the study where the project will be defined to the extent required for final decisions by the potential partners, U.S. Steel chairman and chief executive officer John P. Surma said during the steelmakers first-quarter earnings call April 30.
The project could afford us the opportunity to leverage the rounds supply agreement, abundant and competitively priced natural gas, and potentially our iron ore assets to provide a very attractive cost structure for our tubular operations at Lorain, Surma said.
U.S. Steel recently signed an agreement with Republic for the supply of steel rounds to its tubular facilities from January 2014 (amm.com, April 29), which will largely supplant commercially purchased rounds that weve been purchasing from a number of sources, Surma said.