Steel Bridge Update: Research, Availability, Choices & Costs

Transcription

1 Zakim Bridge, Boston Steel Bridge Update: Research, Availability, Choices & Costs Matthew F. Habenicht ArcelorMittal USA Highway Cost Conference September 11, 2007 St. Louis, MO Marquette Interchange

2 State of the Steel Industry Global steel economy continues strong = 3 record years of shipments. China meeting own needs with new capacity. - Potential Chinese steel exports to USA causing concerns. Scrap prices have been up; recent surge driven by demand in Turkey, Malaysia, Thailand. - Iron ore prices also continue to rise Plate prices had been stable. Tight availability of heat treated & heavy or ingot plates - Iraqi war effort continues strong demand at ArcelorMittal s Conshohocken plant for Army armor. Continued global consolidation: IPSCO, Algoma, & Oregon.

3 Consolidation in the US Plate Industry Key Strategic Highlights Jindahl starts up Houston Bethlehem acquires Lukens IPSCO starts up Montpelier Nucor starts up Hertford (Oct 01) IPSCO starts up Mobile (Nov 01) ISG acquires Bethlehem ISG acquires USS Gary Plate Nucor acquires Tusca loosa (June 04) Mittal acquires ISG H.I.G. acquires Citisteel Arcelor & Mittal merge Evraz acquires Oregon SSAB acquires IPSCO Key Operational Highlights Oregon Shuts down Fontana Bethlehem shuts down Sparrows Point 160 mill Bethlehem Idles Burns Harbor 110 mill Gulf States shuts down Geneva shuts down Oregon shuts down melt shop ISG restarts Burns Harbor 110 mill AM USA restarts Gary 160 mill 5,296 5,453 4,898 5,514 5,079 4,873 5,095 5,609 6,042 6,982 7,000 (1Q07 annualized) US Mill Carbon & Alloy Cut Plate Shipments in thousands of tons - Source AISI

4 US plate market is attractive and has a significant growth potential by 2010 US market - Cut Plate Apparent Consumption forecasts are based on CRU s growth estimations The main drivers of future growth are the energy markets (linepipe, wind towers, offshore)

5 US plate market is attractive and has a significant growth potential by 2010 Canada 316kt Exports 1,115 kt Mexico 1kt USA 2006 (AISI Cut Plate) Consumption 7,473 kt Production 6,982kt Total Imports 1,595 kt Exports 1,115 kt Net Imports: 480 kt South America 21kt Europe 237kt Africa 46kt CIS 233kt China 37kt Asia 631kt Oceania 73kt Import flows in US Export flows from US

6 AM USA is #3 supplier of the US Cut Plate domestic shipments based on 2006 data JINDAL 3% CLAYMONT 6% OREGON 6% LETOURNEAU 1% IPSCO 31% AM USA 26% NUCOR 27%

7 Various Welding & Design Activities Optimizing weldments & guidelines for use of HPS 70W and HPS 100W Continuing studies on the ductility, live-load deflection, superior toughness, and seismic attributes of HPS grades. Projects to develop new corrosion resistant grades of steel.

8 HPS Use in Bridges - Highlights HPS grades in use in 45 States; over 250 in service Benefits of HPS 70W: 5 to 10% cost reduction - Largest project, Mass. Route 3 with 33 HPS bridges; includes 100th bridge in service - Marquette Interchange in WS and Blennerhassett in WV are projects that are major users of HPS Hybrid designs with HPS 70W and 50W - For improved clearances totally HPS 70W used HPS 100W used in NE, NY and WV; NC currently Use in fracture-critical members encouraged by FHWA

9 Steel Availability Millau Viaduct, France

10 Production Facilities for Bridge Steels Plate and Structural Shapes (main members) Oregon former USS Gary plate mill to be opened by ArcelorMittal by end of 2007 IPSCO ArcelorMittal SDI ArcelorMittal Claymont Chaparral Nucor- Yamoto Nucor Nucor Chaparral IPSCO Plate Structural Shapes Jindahl LeTourmeau

11 Steel Choices Marquette Interchange

12 Traditional Steels and New HPS for Bridge Construction A709 Similar Typical Nominal Levels Grade ASTM Production C.E. C 36 A36 HR A572 HR W A588 HR W A514 Q&T HPS-50W - HR,CR HPS-70W - CR, IAC,Q&T HPS-100W - Q&T A1010 A1010 T, N&T, Q&T NA.01 HR - Hot-Rolled, CR - Control-Rolled, IAC - Interrupted Accelerated Cooled, Q&T - Quenched and Tempered, N - Normalized C.E. = C + Mn + Cu + Ni + Cr + Mo + V

13 Steel Pricing Woodrow Wilson Bridge

14 CRU Base Price $850 $ $750 $700 $650 $600 $550 $500 A- 06 S- 06 O- 06 N- 06 D- 06 J- 07 F- 07 M- 07 A- 07 M- 07 HR CR HDG Plate J- 07 J- 07 A- 07

15 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Worldwide Plate Pricing Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 USA W.Europe Japan Far East China Date Jan-96 Jul-96 Jan-97 Jul-97 Jan-95 Jul-95 Jan-94 Jul-94 Spot Price, $/tonne

16 Relative Bridge Steel Pricing ASTM A709 Grades and A1010 A1010 HPS 100W* Steel Grade 50W 50 Base - 36 HPS 70W HPS 50W 100W* 1" x 96" plate * Ni &/or Mo surcharge may apply Relative Pricing

17 ArcelorMittal Sales/Technical Contacts Larry Pacana Eastern US Jayne Atherton Western US Alex Wilson Technical Issues Jerry Shick Specifications

18 Latest Steel Bridge Information at