Some major ArcelorMittal USA plants are operating at rates as low as 17-18% of capacity, according to the president of United Steelworkers Local Union 1011, Loren Hanson, who recently posted a full plant-by-plant breakdown on his Local's Web site blog. Hanson represents workers at ArcelorMittal's East Chicago, Indiana, mill.

 

Based on Hanson's table, titled "What is happening at other plants," the average operating rate for the 14-listed plants is 46%, but ArcelorMittal's four key flat-rolling mills -- East Chicago, Burns Harbor, Cleveland and Riverdale -- are operating at a combined 26% of capacity.

 

Hanson reports that both East Chicago West and East Chicago East are operating at 30% of capacity. He noted there are 1,400 workers at East Chicago West with 85 total layoffs and 33 employees working reduced hours. Hanson reported that 105 employees have opted for retirement in 2009. In a footnote, the Union president said that "the company states if orders do not improve by April 1, 2009," another 115 workers will be laid off from its hot-strip mill.

 

Spokespersons for ArcelorMittal USA chose not to respond to Hanson's facility-by-facility breakdown. Market sources indicated, however, that production cuts implemented by the steelmaker at the end of 2008 have helped reduce mill inventories. Like other steel producers in the US, ArcelorMittal executives have their fingers crossed that Q1 will be the bottom of the market, and that once de-stocking is finished, there will be a technical pick-up.

 

Meanwhile, East Chicago East, with 3,400 employees counts 118 total layoffs and 100 working reduced hours. Seven workers have opted for retirement in 2009.

 

In a typical year, ArcelorMittal's Indiana Harbor Works might ship 2.3 million st/year of hot-rolled coil, and about 200,000 st/year each of cold-rolled and coated, according to industry analysts.

 

Hanson further noted in his table that AM's Burns Harbor mill, with 3,300 employees, was operating at 35% of capacity. Here, the union reported 490 workers on layoff and 900 on reduced shifts. This operation can usually ship 1.6 million st/year of HRC; 1.2 million st/year of galvanized/coated; nearly 1 million st/year of cold-rolled coil, and about 800,000 st/year of plate.

 

Another of ArcelorMittal's big US flat-rolling mills is its Cleveland Works, which Hanson reported running at just 17% of capacity. He indicated Cleveland counts 1,500 employees and 450 were laid off. In another footnote, Hanson reported that 400 more workers would be laid off from Cleveland "if orders no not improve by April 1," as stated by the company. Cleveland typically ships 2.2 million st/year of HRC and about 400,000 st/year of CRC.

 

Operating at 18% of capacity, according to the union, was ArcelorMittal's Riverdale, Illinois, mill which generally ships about 600,000 st/year of HRC. With 244 employees, Riverdale was issued a letter from the company warning of 100 permanent layoffs, stated Local 1011.

 

WEIRTON BUZZING ALONG AT 90% CAPACITY

Hanson also reported that the ArcelorMittal mill in Weirton, West Virginia, was operating at 90% capacity. Largely now a roller of tinplate, Weirton's product mix may be benefiting from somewhat stronger demand than other steel sheet products. Tinplate is used mainly to produce food cans.

 

"People are dining out less in this economy," an executive at another tinplate producer told Platts, "and they are stocking up on canned goods, so the tinplate market has been fairly decent." He pegged current tinplate pricing at a healthy $1,300/mt ex-works.

 

As for some of AM's other units, its Coatesville, Pennsylvania mill which makes plate was reported operating at 75%. Its Georgetown, South Carolina plant, which makes wire rod and coiled rebar, was reported operating at 40% of capacity.

 

An ArcelorMittal Minnesota operation that supplies iron ore for the steelmaker's blast furnaces, was operating at 75% of capacity. And its Warren, Ohio, coke plant was operating at 75%.

 

Two galvanizing plants at Hennepin, Illinois, and Lackawanna, New York -- reported operating at 10% and 30% of capacity, respectively – are slated for permanent closure this quarter, as announced by the company. –Platts