AISI examines Katrina’s impact on steel industry

AISI examines Katrina’s impact on steel industry

The American Iron and Steel Institute (AISI) has released a post-Katrina fact sheet which addresses Katrina’s impact on the steel industry. One issue is the potential shortage of liquid hydrogen needed to make cold rolled and coated steels. AISI says that the shortage has largely been addressed, despite initial concerns over damage to the nation’s primary hydrogen supplier which should be repaired by year’s end. Alternative supplies have since been located and disruption has been minimal. Another major industry concern has been the disruptions to the Port of New Orleans. AISI reports that while port disruptions may have temporarily slowed steel imports, the port expects 125’000 tons of steel to be handled by its facilities this week. During the week of September 13, the port received 21’000 tons of cold-rolled steel from Germany and another 4’500 from South Korea. The upriver terminals, which handle 70 percent of the port’s business, should be repaired by the week ended September 27. The pressing task at hand is the restoration and rebuilding in the affected region. Restoration will require a major cleanup of debris, including steel scrap from buildings, bridges, appliances, automobiles and other products which can be used as raw materials for making new steel. Rebuilding will be a massive task, but AISI refutes myths of short supplies and believes that the steel industry will easily be able to meet the demand for construction materials. The National Association of Home Builders estimates that 200’000 new housing units will need to be built. The steel industry is busy establishing steel frame alternatives for hurricane-resistant housing. AISI estimates nearly 700’000 tons of sheet will be required to frame 100’000 new homes. Steel pilings, which have already been used to repair breached levees, will be needed to rebuild port and industrial facilities throughout the region. Steel H-pile is also needed to repair railroads to restore their permanent infrastructure. Power restoration in the area will require an extensive number of utility poles. To produce 100’000 steel utility poles will require 25’000 tons. Regardless, AISI believes the steel industry is poised to meet this demand. Current capacity utilization is mid-80 percent and should have no problem ramping up production to assist the rebuilding effort.