PITTSBURGH Flooding in the Quad Cities area has stopped rail shipments in and out of the SSAB Americas plate mill in Montpelier, Iowa.
The weather isnt directly impacting the mill, but high water has forced Canadian Pacific Railway Ltd. (CP Railway) to embargo all shipments in and out of its Davenport, Iowa, yard, which services the mill, according to a rail employee.
As a result, scrap cant be sent to the mill and finished plate products cannot leave the mill by rail.
Scrap metal suppliers have been informed of the rail disruption. The mills scrapyard is still able to receive shipments by truck and will remain open July 5 so that it can receive as much raw material as possible.
It was unclear if plate customers relying on rail deliveries would receive shipments a few days late. Truck shipments of plate will continue.
SSAB Americas, the Lisle, Ill.-based subsidiary of Stockholm-based steelmaker SSAB AB, declined to comment on the situation, noting that it is in its quiet period until second-quarter earnings results are released July 23. The company has reported lengthy lead times for plate products this year (amm.com, June 11).
The CP Railway yard in Davenport is on the Mississippi River, where flooding has reached the foundations and the river is expected to rise another 8 inches before it subsides, according to weather forecasts, although the rail employee said the problem is expected to be resolved within a week.