Steel Dynamics (SDI) is on track with the construction of its new electric-arc furnace (EAF) powered mill for the production of flat-rolled steel in Sinton, Texas.
The company, which has an annual steel shipping capacity of 13mn nt (11.8mn mt), verified its project timeline and provided further details in its latest investor presentation, also confirming the 2021 construction revival plan.
SDI estimates steelmaking will grow by 27mn nt in certain local markets including 7mn nt in Texas and surrounding states, 4mn nt on the West Coast, and 15mn nt in Mexico with about 45pc being imported. The steelmaker estimates it will ship 30pc of its Sinton products to Mexico with 70pc projected to US destinations.
The company will be positioned to receive benefit from imports and high-growth steel consumers, noting flat-rolled steel consumption in Mexico rose more than 20pc from 2013 to 2019 and recorded 15mn nt of shipments in 2019. Mexican imports of flat-rolled steel denoted over 40pc of the market at 6mn nt in 2019, SDI recounted.
The new $1.9bn EAF flat-roll steel mill will produce about 3mn nt annually representing an increase of more than 25pc of the steel producer’s yearly capacity. The project includes a 550,000nt galvanizing line, representing 12pc of its product mix, and a 250,000nt paint line at 9pc. Hot-rolled steel is projected to encompass 60pc of Sinton’s estimated product mix, with pickled & oiled at 12pc and cold-rolled at 7pc.
The company cited location advantages that include local steel processing and consumption capability of 800,000-1mn nt per year, proximity to prime scrap producers within the four-state Texas region and Mexico, via its existing supplier base, as well as through its new acquisition of Mexican metal recycler, Zimmer.
The new site will also provide cost-effective pig iron access along with alternative iron access through the Corpus Christi port. The location’s targeted markets include construction, automotive, energy tubular, appliance, and other manufacturers.