NEW YORK Severstal North America Inc. has slated outages at both its Dearborn, Mich., and Columbus, Miss., facilities in November, a spokeswoman has confirmed.
The outage at the steelmakers Columbus operation, scheduled for the beginning of November, is related to the hot strip mill, electric-arc furnace and caster, the spokeswoman said in an e-mail. She declined to offer further comment, but a number of sources said that the outage is part of annual maintenance and would last for about a week.
The steel producer also confirmed it was planning an outage at its hot-strip mill in Dearborn in November.
Earlier this month, lead time updates sent to customers of the Columbus mill indicated that hot-rolled coil would have a four-week lead time while cold-rolled had a seven-week lead time. However, updates sent last week indicated that the companys hot-rolled lead times have jumped to seven weeks while the cold-rolled lead times shortened to six weeks, causing some confusion in the market on why the cold-rolled substrate had a longer lead time than the actual product.
One buyer said that the planned outage meant the steelmaker had pushed orders forward to accommodate its hot-rolled orders, so the wider lead times made sense. He added that stocking excess inventory was typical ahead of a planned outage, and with buyers citing better cold-rolled orders due to a stronger automotive sector, the company may want to focus on keeping cold-rolled lead times in line with other mills.
Severstal Dearborn is a full integrated flat-rolled facility that is capable of producing 3.7 million tons of hot-rolled steel, 2.1 million tons of cold rolled, 1.1 million tons of galvanized and galvannealed sheet and 347,000 tons of electrogalvanized sheet annually.
Columbus, its southern counterpart, operates two electric-arc furnaces and is capable of producing 3.4 million tons of hot-rolled steel, 1.5 million tons of cold rolled and 1.1 million tons of galvanized and galvannealed sheet annually.