Sources inform SteelOrbis that Nucor’s DRI plant in Louisiana is expected to stop production in mid-to-late June for approximately 25-30 days for planned maintenance. The source noted that the 2.5-million-ton annual production translates to approximately 208,000 tons monthly that will need to be planned for by mills.
With the upcoming planned shutdown of industrial prime scrap sources such as auto-making stamping and assembly plants for 1-2 weeks in late June or early July along with the DRI shutdown, the tight supply of busheling is expected to support its price in June and July. According to the source, this should buoy busheling prices in June and July along with overall strong domestic demand for the grade. He added, “Even with some mills also coordinating planned maintenance outages during the period, I foresee sideways pricing of busheling into June and July despite the plausible scrap and pig iron imports to factor.” A separate source added, “With the transportation issues continuing delaying scrap deliveries, higher desirable yields from prime grades, and the desire to maintain utilization rates as lead times have prolonged, I think busheling has a good probability of trading sideways in June and July despite other uncertainties.”