Cleveland-Cliffs’ Post

Yesterday marked a sombre day for the steel town of Port Talbot, Wales, as the largest steel producer in the UK shut down its final blast furnace. This closure not only brings heavy job losses and deep emotional impact to communities in South Wales but will have a wider consequence for the British metals market and industries dependent on its steel. As a system integrator who's worked with many of the team at Port Talbot over the last 4 decades, we can begin to understand the deep impact this has had. 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐔𝐊 𝐦𝐞𝐭𝐚𝐥𝐬 𝐦𝐚𝐫𝐤𝐞𝐭: The shutdown of the furnace will likely lead to a temporary increased reliance on imported steel, raising concerns about cost fluctuations, supply chain disruptions, and the long-term competitiveness of UK steel. Potentially, this shift could reshape the domestic metals market, putting pressure on local industries and theoretically spark a push for alternative sources of material. 𝐓𝐡𝐞 𝐰𝐢𝐝𝐞𝐫 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐁𝐫𝐢𝐭𝐢𝐬𝐡 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲: The plant has been a cornerstone of the industry for decades, particularly manufacturing, construction and automotive have been dependent on the consistent and local supply of steel from Port Talbot. Port Talbot supplies downstream processing for tin plate, automotive, colour coat, tubes for construction and pipelines. This closure could slow down production rates and raise costs, ultimately affecting the stability of industries heavily reliant on high-quality metal. The knock-on effect of higher material costs and possible delays in infrastructure projects could see industries need to seek new suppliers or shifting towards more innovative materials to maintain continuity. However, we see this as a call to adapt and look at more sustainable solutions for automation & control within the industry. While the shutdown presents challenges, it also offers opportunities for innovation & adaptation. We are committed to working with our clients to develop solutions that help them navigate these changes and ensure business continuity. 𝐈𝐬 𝐭𝐡𝐞𝐫𝐞 𝐚 𝐬𝐢𝐥𝐯𝐞𝐫 𝐥𝐢𝐧𝐢𝐧𝐠? Steel production at Port Talbot will resume in 2027/2028 as a result of a £1.25 billion investment in electric arc furnaces (£750 million from TATA and £500 million government funded). The shift toward green energy and more sustainable industrial practices presents a long-term positive vision for the future. This is a moment for innovation, where industries can reassess their operational models and explore new energy-efficient technologies. We wish everyone in Port Talbot all the best… #teamiconsys

Century Aluminum aims to roughly double the U.S. output of aluminum from smelters by building the country’s first new smelter in 45 years. The company’s biggest challenge is securing an affordable power supply. In manufacturing, few things are as power-intensive as turning powdery aluminum oxide into metal. Producing a ton of aluminum typically uses more electricity than a single household consumes in an entire year. Century expects its planned smelter to produce about 1,500 metric tons of aluminum a day. “This is going to be a test case for America’s reindustrialization,” said Joe Quinn, executive director for the Center for Strategic Industrial Materials. Century is counting on the aggressive build-out of solar- and wind-powered generating capacity now under way to start yielding excess power after 2030, and the company hopes to lock down supply in exchange for a decade’s worth of steady electricity demand from a new smelter.

An insightful article -- focused on Century Aluminum, its Kentucky facilities, and its plan to build the first new aluminum smelter in the U.S. since 1980 -- that's also a de facto case study of why Kentucky and America must ramp up the supply of affordable, reliable, increasingly clean energy: to grow industry, jobs, and opportunities. And ultimately to protect America’s manufacturing dominance. That's why we're establishing the KAM Energy Roundtable, the first statewide forum for business and industry to build consensus around a statewide energy strategy, something Kentucky lacks and badly needs. The Roundtable's first meeting is August 28 at EKU. If you’re interested in your company participating, reach out. #KYmanufacturing #KAMenergyroundtable #KYinnovation

Anecdotally based on conversations I've had, I think we can expect lots more big investments in furnace upgrades and capex projects this year... https://lnkd.in/gi-ZPxX4

The metals sector is poised to experience significant growth as supply chains shift to reduce exposure to an increasingly risky environment. How well do you compete? Our in-depth report will give you actionable insights to compete and win. #metals #competitiveness #benchmarking #siteselection #economicdevelopment

  ICYMI: Century Aluminum plans to build an aluminum smelter in northeastern Kentucky. This new facility would be the cleanest and most efficient aluminum smelter in the world and would be the nation’s first new aluminum facility since 1979.   Northeastern Kentucky has been hit hard by job losses, and this new potential investment funded by the U.S. Department of Energy (DOE) will bring about 1000 permanent jobs—potentially the largest investment on record in the region.   This is an example of how the United States can compete, lead in transforming our industrial sector, and create good-paying jobs by investing in our communities. #InflationReductionAct   https://lnkd.in/gvvKJUgV

U.K. - The endgame of deindustrialization or a potential upgrade to electric-arc furnaces? I find it extremely difficult to believe that there are real plans for electric-arc furnaces. The electric energy required for such steelworks is mind-blowing and it is unclear as to where this would be produced. The grid is near to its limit today as things stand.

Interesting observation about Cliffs: As EV sales impact ICE vehicle sales, Cliffs has the unique ability to pivot from auto exhaust ferritic grades to electrical steel grades. Cliffs presented a very interesting discussion about this topic at the SMR Group - Steel & Metals Market Intelligence last year in Nashville. ( I’d note that if you have not attended the SMR conference you should)

What's the Cost of #Ilmenite_Processing Plant? https://bit.ly/3x6cI9Q 1. Market Overview 2. Scale of Operation 3. Location 4. Technology and Equipment 5. Processing Costs 6. Environmental Considerations 7. Labor and Operational Costs 8. Market and Price Fluctuations

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