On a Roll: Infrastructure buildout, mandates for domestic content and sustainable production push steelmakers to expand capacity

Above: Nucor has shipped plate, beam and piling for the “rst wave of bridge projects” nanced through federal infrastructure spending bills

January, 2025- Analysts from Business Research Insights (BRI) estimate that the global steel plate market will grow 2.55 percent per year to reach a value of $84.8 billion in 2032, compared with $65.9 billion in 2022.

“The expanding steel plate market size can be attributed to the burgeoning global demand for infrastructure development and construction projects. Rapid urbanization, coupled with increased investments in industrial and commercial sectors, has propelled the need for robust and reliable building materials. Steel plate [is] a preferred choice in meeting these construction demands,” the BRI report states.

The COVID-19 pandemic caused disruptions in production, supply chains and demand for steel plate demand. Project delays and cancellations in construction and infrastructure further dampened demand.

A rebound in industrial activity since the COVID-19 pandemic has contributed to rising plate demand.

Since then, however, “stimulus packages, infrastructure investments and a rebound in industrial activities are contributing to demand recovery.”

TRENDS

One emerging trend in the steel plate sector is the integration of advanced technologies for improved performance and sustainability. Some producers are launching products that offer greater strength, durability and ecofriendly attributes. High-strength steel plates with advanced alloys are gaining prominence, catering to the demand for lighter yet stronger materials in automotive and aerospace applications. Digitalization and data-driven solutions in manufacturing processes is a second trend that optimizes efficiency and reduces environmental impact.

“Key industry players are investing in research and development to introduce smart coatings, corrosion-resistant alloys and energy- efficient production methods, aligning with global sustainability goals and meeting the evolving demands of a technologically driven market,” the BRI analysts said in their report.

NUCOR PLATE MILL GROUP

In North America, three producers have recently expanded their plate production capacity or are poised to do so over the next two to three years.

Last October, Nucor Corp. started up a new plate mill in Brandenburg, Kentucky.

Chairman, President and CEO Leon Topalian told investors that the venture positions Nucor “as the most capable plate supplier in the largest plate consuming region of North America, able to produce specialty plate products that support our nation’s economy and security in critical areas such as wind, long-span bridges, military applications, power transmission, amongst many others.”

Topalian said that Nucor has shipped plate, beam and piling products for the “first wave of bridge projects” that were financed through federal infrastructure spending bills. “We believe a lot more has yet to make it out of state-level permitting and bidding processes, especially with respect to highway construction and power transmission, which will require a great deal of rebar, plate and heavy sheet.”

Renewable and energy storage projects take a long time to secure financing and all the necessary permits, he said. “So while we are starting to see more orders relating to ground-mounted solar and onshore wind, there’s still a lot of upside remaining in the years to come.”

Al Behr, Nucor’s executive vice president for raw materials, says the Brandenburg mill has run the caster “to its full set of capabilities. We’ve cross-rolled plate almost to the full width of the mill, which is 168 inches. We’ve commissioned our continuous heat treat lines.”

In November 2023, the company announced plans to invest $280 million at its Tuscaloosa, Alabama, steelmaking facility to enable the mill to produce thinner, stronger, higher-quality plate and a new product line that is not currently manufactured domestically. That project is slated to come on line during summer 2027.

JSW STEEL USA

Last June, JSW Steel USA Inc., a subsidiary of India-based JSW Steel Ltd., said it would invest $110 million in steel plate mill modernization projects in Baytown, Texas. These investments will enable the production of high-quality monopile steel plates to support the U.S. federal government’s efforts to expand offshore wind energy by deploying 30 gigawatts of such capacity by 2030, enough to power 10 million homes with clean energy.

Parth Jindal, director of JSW Steel USA, said that products made through this investment “are aligned with Buy America requirements for niche grades and sophisticated applications such as hydrocarbon pipelines, offshore wind towers, offshore wind platforms, high-density pressure vessels, monopile steel plates and platforms for offshore wind towers.”

The investments at Baytown will enable JSW “to progressively deliver high quality steel products while further defining our niche markets through a Made in America specialty steel portfolio. These investments have the potential to significantly reduce U.S. import reliance in the infrastructure and renewable energy sectors,” Jindal said.

JSW USA will supply slabs from its Mingo Junction, Ohio, mill to Baytown, ensuring domestic sourcing of raw and finished materials. JSW is also poised to spend $145 million at Mingo Junction to upgrade its “clean steel” manufacturing processes, which it expects to complete in 2026.

Modernization of assets to make greener steel is a compelling reason for reinvestment.

ALGOMA STEEL

Algoma Steel Group Inc., a Canadian producer of hot- and cold-rolled steel sheet and plate products, is also in growth mode. In autumn, CEO Michael Garcia told investors that “despite challenging market conditions, our planned ramp-up in plate production following completion of our plate mill modernization project continued in the quarter.”

The company is initiating commissioning activities on two electric arc furnaces, which replace a blast furnace and basic oxygen furnace steelmaking operation. “We remain on target to achieve steel production at the first EAF by the end of the first quarter 2025.”

Following the transformation to EAF steelmaking, Algoma will have an annual raw steel production capacity of 3.7 million tons, matching its downstream finishing capacity of over 3 million tons. Through the project, Algoma expects to reduce its annual carbon emissions by 70 percent.

 

 

 

 

 

 

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