Steel Mills
May 28, 2019
Expansion Plans at NSBS Face Challenges
Written by Sandy Williams
A $700 million expansion at North Star BlueScope may be in jeopardy, according to some financial analysts who point to new challenges for the mill now that the Section 232 tariffs have been removed from Canada and Mexico.
Softening hot rolled coil prices and higher cost inputs are expected to pressure U.S. steel spreads. The reduction of tariffs on imported scrap from Turkey is raising scrap prices in the U.S., an important input for North Star. In addition, the resurgence of Canadian and Mexican steel to the U.S. market and new capacity coming online by 2022 will add to competitive pressures for the Ohio firm.
