SEATTLE (Scrap Monster): The proposed additional EAF steelmaking capacity is expected to boost consumption of ferrous scrap, said leading steelmaker Cleveland-Cliffs. This was disclosed by Laurenco Goncalves in a conversation with analysts following announcement of results for the fourth quarter and full-year of 2021.
According to him, the company expects increased costs, related to energy and materials. The capex budget for the current year is projected between $800 million and $900 million.
The increased use of HBI and reduced usage of coal and coke will help the company to lower its emissions. The HBI from its flagship DRI plant in Toledo is used in-house by Cleveland-Cliffs. Also, the company is currently working in partnership with Linde to utilize hydrogen in Toledo. It must be noted that the plant is capable of using up to 70% of hydrogen in the mix.
The company has accomplished major milestones, securing a number of additional sources of prime scrap offtake, most notably the largest automotive stamping plant in the country. The plant generates more than 150,000 tons of prime scrap every year. Additionally, the steel scrap from automobile manufacturers will be directly fed to its steelmaking facilities, thereby ensuring a closed loop. Furthermore, the use of additional scrap in BOFs would reduce the need for iron ore, Goncalves added.
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