None of the US steel mills got in the way of Hurricane Ida, although metal sources estimated the potential impact on Aug. 30, when the hurricane hit utilities, and the hurricane is expected to hurt logistics in Louisiana and beyond.
The storm, which hit the coast on August 29 as a Category 4 hurricane, passed about 100 miles south of New Orleans, near the port of Fourchon.
Rail and road freight services in the region remained a problem, sources said, and it is too early to tell on Aug. 30 how the storm will affect transit barges, both arriving and departing from the port of New Orleans.
The port of New Orleans imported 1.04 million tons of steel products in 2020, in addition to 3.51 million tons of iron and ferroalloy products, according to the American Iron and Steel Institute.
According to AISI, the Port of New Orleans is also a hub for raw materials such as cast iron. Pig iron imports in 2020 amounted to 2.61 million ounces, while pig iron and scrap steel imports were 378,905 ounces.
Crews were still assessing the aftermath of Hurricane Ida on the afternoon of 30 August, as cargo operations remained closed, according to a statement from Port NOLA.
“Initial reports indicate no major damage to our facilities,” Port NOLA said. “We are coordinating with our navigation partners, as well as local and government officials, so that we can resume operations safely and as quickly as possible.”
The steel trader said he expected the port to be closed for about a week and it would take 10-15 days for work to return to normal after the storm.
Port problems could further complicate an already tense steel market and cause delays in the supply of imported steel products. Hot rolled coil prices in the US continued to set new all-time highs thanks to strong demand coupled with limited supply in the market ahead of a series of planned outages in the fourth quarter.
The S&P Global Platts TSI Hot Rolled Coil Index in the United States was calculated at USD 1,938.25 per unit. EXW, Indiana, Aug 30, up nearly 100% YTD. With record high prices, domestic mills began negotiations on indexed contracts with minimal discounts, full freight and additional services. Plants have already entered the contracting season with a firmer stance, and any bottlenecks in the supply chain could threaten the market power of buyers.
“In a surge, barging will be very difficult,” the trader said.
In terms of raw materials, Nucor's direct reduced iron plant in Louisiana was shut down ahead of time before Hurricane Ida hit the shore, a company spokesman said on August 30.
“Our Nucor teammates and their families are safe and DRI was not hit by the hurricane,” said Nucor spokeswoman Catherine Miller. "We expect to resume operations in the coming days when we determine that it is safe given the impact of the storm on the region as a whole."
The Nucor plant in Louisiana, located in St. James County, has a production capacity of 2.5 million tonnes per year.
