SDI to pick mill location this month: Millett
Jun 11, 2019 | 08:21 AM
CHICAGO — Steel Dynamics Inc. (SDI) aims to announce the location of its new $2-billion flat-rolled mill before June is out, the company’s top executive said.
“We are concluding site-related arrangements and incentive packages for locations in both Texas and Louisiana. I would expect an announcement before the end of the month,” SDI president and chief executive officer Mark Millett said in an email to Fastmarkets AMM.
Fastmarkets AMM reported in January that Corpus Christi, Texas, was in the lead to land the mill due to:
- good rail, road and shallow- and deep-water port access
- proximity to Voestalpine’s hot-briquetted iron plant, also in Corpus Christi
Millett has said that SDI is considering five sites - three in Texas and two in Louisiana.
- proximity to the growing Mexican steel market
SDI in November announced plans to spend nearly $2 billion to build a flat-rolled mill in the southwestern US with capacity of approximately 3 million tons per year.
Millett said in mid-March that SDI was four to six weeks from picking a mill site. It has now been more than 12 weeks, but some market participants have told Fastmarkets AMM that an announcement really is around the corner this time.
Big River Steel has also announced plans to build a flat-rolled mill in Texas, where it has optioned land for a potential new campus at the port of Brownsville.
The expansions come at a difficult time for steel prices.
Fastmarket AMM's US Midwest daily hot-rolled coil index averaged $31.06 per cwt in May, down 8.4% from $33.91 per cwt in April and 31.9% from a 2018 peak of $45.61 per cwt reached in July. US HRC prices are at their lowest in more than 2½ years.