Algoma Steel May Restart No. 6 Blast Furnace Amid Scrap Supply
Algoma steel said this week it may restart its No. 6 blast furnace, a 73-year-old unit commissioned in 1953, if it runs short of material for its electric arc furnaces. The contingency keeps backup ironmaking capacity in view just months after the company said coal-based integrated steelmaking was permanently shut down. For workers, suppliers and investors, the question now is how far the company will lean on old assets while it tries to keep the new system fed.
Marwah Flags Backup Capacity
Rajat Marwah, Algoma's chief executive officer, raised the possibility on a conference call with investors this week. He said the furnace could be brought back if the company has trouble finding enough material to supply its electric arc furnaces, which are now the path forward after the Jan. 18 shutdown of No. 7 and its associated coke batteries.
The company had already tied its transition to electric arc furnaces to $500 million in financing from the federal and provincial governments, and said the shift was expected to cut carbon emissions by about 70 per cent. Marwah's comments show that the transition still depends on a steady stream of feed material, even after the old coal-based system was put down.
No. 6 Stayed In Reserve
No. 6 was commissioned in 1953 and replaced the aging No. 3 and 4 furnaces. No. 7 later superseded it in 1975, but Algoma left No. 6 in place in case backup was ever needed.
That reserve role has surfaced before. No. 6 was idle for more than a decade around the turn of the millennium, then briefly restarted in 2008 after a $40-million rebuild tied to a plan to expand capacity to four million saleable tons. There was also talk of firing it up again in 2014.
Scrap Supply Still Matters
"The scrap is coming from Canada and some from U.S., but mostly from Canada," Marwah said during this week's presentation to investors. He also said, "There is enough scrap available from a sourcing perspective as we are ramping up."
Algoma said scrap metal is coming from Canada and some from the U.S., mostly from Canada, and said there is enough scrap available from a sourcing perspective as it ramps up. If that supply holds, the No. 6 furnace stays as a contingency rather than an immediate operating plan. If it tightens, the old furnace becomes the fallback that could help keep the new steelmaking system running.
