Industry analysts say reopening of Georgetown steel mill "doubtful"

Steel Business Briefing, a global steel information service, said Thursday that market sources are skeptical the Georgetown Steel Mill will reopen.

On Monday, NewsChannel 15 reported that local Steelworkers President James Sanderson says the economy is improving and he's confident ArcelorMittal will announce it's reopening the plant "in the near future."

The company suspended operations at the plant indefinitely last July, saying the recession had caused a significant drop in demand for steel. Shortly after Sanderson made that comment, we received the following statement from Arcelor Mittal: "ArcelorMittal has indefinitely ceased operations at the company's Georgetown facility, which will continue unless market conditions appreciably improve or the plant is put on a more competitive footing."

Steel Business Briefing's article goes on to say:

"Demand is being met," one market source told SBB, though supply is tight. He said he just didn't see the need for more capacity. SBB reported earlier this week a union representative said he believes a restart is just around the corner. An ArcelorMittal spokesperson didn't confirm the union's comments, saying market conditions would dictate any restart. The facility has been idled since last year. Another source familiar with the US wire rod market said, "The ArcelorMittal sales guys did not mention it. I think the union guy is making noise. ArcelorMittal has committed to nothing yet. I just don't see them doing it unless the market tightens up another turn." The facility produces carbon and alloy wire rod and has a total capacity of 750,000 short tons/year.

You can link to the SBB here.