Friday, January 11, 2008

Steel ascendant?

Not everyone may realize that one of the biggest investments being made in the region is the $1 billion (that is a B) being planned by US Steel to upgrade its Clairton Coke works. If you wonder why they are doing that, the blog Steel Strip World pretty much gets to the heart of it: Read more. The story of the steel industry in general (not just the Pittsburgh miasma) really centers on the changing competitiveness of large integrated steel plants vs. electric arc minimills. What is an integrated steel plant? Just go take a look at the Edgar Thompson Works in Braddock. I (greatly) simplify of course, but what is an electric arc minimill? Things they they have mostly been building elsewhere for the last 40 years. For more on the state of steel here and elsewhere I refer to my friends over at Pitt's Center for Industry Studies.


Anonymous Anonymous said...

It is a great time to be an integrated mill. High energy costs and high scrap costs are making the product of the minimills extremely expensive--at the same time that the integrated mills can produce a more sophisticated product.

Friday, January 11, 2008 6:16:00 PM  

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