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American idle: Some U.S. steelmakers are keeping older mills closed


American idle: Some U.S. steelmakers are keeping older mills closed
A furnace inside a steel plant
Two of the nation s largest steelmakers Cleveland-Cliffs Inc. and United States Steel Corp. are keeping older mills closed, passing up a chance to sell more metal at record prices, because of the high cost of restarting and the threats to their survival from rivals new plants.
So says The Wall Street Journal in an article that maintains the closures have exacerbated a shortage of steel that is contributing to higher prices for cars, appliances and machinery.
Cleveland-Cliffs and U.S. Steel are keeping about seven million tons of production capacity out of service, the Journal says. That represents roughly a tenth of domestic consumption in 2019, according to Metal Strategies Inc., an industry consulting firm. Steel prices, meanwhile, have reached records, the paper notes, with spot-market steel prices climbing more than 60% since the start of the year to ....

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