Scrap Consumers

CMC secures permission for fourth micro-mill

West Virginia’s environmental protection department has given longs producer Commercial Metals Company (CMC) permission to begin construction of a micro-mill near Martinsburg, Berkley County.

“With the permit in hand, and land purchase completed, we can now begin construction to achieve our targeted commissioning date in calendar 2025,” said CEO and chairwoman Barbara Smith.

The plant is designed to have a production capacity of 500,000 s.tons/y of straight and spooled rebar in various sizes. CMC’s other micro-mills are at Durant (Oklahoma) and two, including one under construction, in Mesa (Arizona).

The Martinsburg announcement came a few days after Texas-based CMC said it had purchased Edsco Fasteners from MiddleGround Capital. Edsco’s anchor cages, bolts and fasteners are manufactured mainly from rebar, a core CMC product, and used primarily to secure high voltage electrical transmission poles to concrete foundations.

Smith said the acquisition extends CMC’s capabilities to new and growing applications, including the long-term transition to renewable energy which will require extensive investment in electrical transmission capacity and wind power installations.

Rising domestic production will limit imports, increasing need for scrap

US longs output will rise by ~260 Mt from 2024-2027. Newly announced rebar mini mills could add ~5 Mt/y of additional capacity, should they all come to fruition. In addition to the CMC mills, Nucor, Highbar LLC, 72 Steel, Miami Steel, and Ashoka Steel Mills have all announced new rebar mills. As a result, the appetite for rebar imports will diminish in the coming years. Furthermore, the rise in EAF production will boost ferrous scrap demand. Between 2017-2025, the US steel industry will have added over 10 M tons of EAF capacity, while some integrated Canadian mills are also planning to switch over to the EAF steelmaking process in the coming years. These increases will substantially and structurally raise demand for both scrap and ore-based metallics, and prime grade scrap will likely be even more sought-after. Upcoming supply tightness for metallics is a global phenomenon as North America is not alone in undergoing these changes.

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