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Nucor's (NUE) Louisiana plant shows how the abundance of natural gas has made some manufacturing...

Nucor's (NUE) Louisiana plant shows how the abundance of natural gas has made some manufacturing processes, recently seen as uneconomical, feasible. When complete, the plant will process 2.5M tons/year of direct-reduced iron pellets; at current gas prices, DRI can generate iron pellets at $260-$280/ton, while scrap steel trades at ~$390/ton. U.S. Steel (X) also says it is studying options for building a DRI plant.
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Comments (3)
  • Engineer&Far
    , contributor
    Comments (128) | Send Message
     
    You gotta love Nucor...non-union, treats their workers well, most efficient steel-maker in the World, still innovating..... When the World economy starts to recover, these guys should be in all thinking investor portfolios.
    2 Feb 2013, 11:59 AM Reply Like
  • JohntheOld
    , contributor
    Comments (201) | Send Message
     
    Think I just saw they are building another plant 40 miles north of Memphis on ARK side of river. The price diff is amazing - seems to me that nat gas users are going to do very well...
    2 Feb 2013, 06:58 PM Reply Like
  • Factoflife
    , contributor
    Comments (23) | Send Message
     
    DRI can not be used as a 100% charge to make steel. They will still need to buy scrap. In USS 's case the question is will DRI be cheaper than Hot Metal
    5 Feb 2013, 12:20 PM Reply Like
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