Feb. 4, 2015
U.S. Steel Adjusts Tubular Production
In response to plummeting energy prices, U.S. Steel has announced plans to curtail operations at its Fairfield, Ala., and Lone Star, Texas, tubular mills. Production will also be cut at U.S. Steel’s Fairfield Works facility, the flat-rolled supplier of rounds to the Fairfield Tubular operation. The “adjustments” are temporary reductions in operating levels and not a full idling of the plants, the company said.
The price of oil has fallen more than 50 percent since the middle of 2014 to around $50 per barrel. Additionally, imports of steel products reached historic highs in 2014, noted company executives. The adjustments are a result of softening market conditions that reflect the cyclical nature of the energy market, they said, adding that such production adjustments are a routine response to shifting market conditions. Almost 2,000 employees at the three locations have been notified of the upcoming changes.
U.S. Steel has worked with its customers to anticipate this adjustment and has produced sufficient inventory to meet customer demand during this period, the company stated.