8,026.27 TL BIST 100 BIST 100
28.93 $ USD USD
€31.46 EUR EUR
613.00 TL Interest Interest
78.38 $ Fossil Oil Fossil Oil
25.47 $ Silver Silver
3.88 $ Copper Copper
130.49 $ Iron Ore Iron Ore
375.00 $ Ship Dismantling Ship Dismantling
1,939.91 TL Gold (gr) Gold (gr)

US electrical steel demand surpasses supply due to shortage, KMC executive says

US electrical steel demand surpasses supply due to shortage of domestic value-added steel producers, according to Kloeckner Metals Corporation's top executive.

US electrical steel demand surpasses supply due to shortage, KMC executive says

The demand for electrical steel in the US is expected to outpace supply, as there is a shortage of non-grain-oriented electrical steels (NGOES) needed in the batteries of electric vehicles (EVs). This shortage is due to insufficient domestic production of these value-added steels to meet future demand. Cleveland-Cliffs, the only supplier of automotive-quality electrical steels in North America, invested $30 million in its Zanesville, Ohio plant to contribute 70,000 short tons to the steelmaker's non-oriented electrical steels (NOES) capacity by the end of 2023.

US Steel, another major steelmaker, is set to be the second US supplier of NOES. The company's upcoming NOES line, branded "InduX," at Big River Steel in Osceola, Arkansas, is scheduled to achieve full production of 200,000 short tons per year in 2024.

The rise in demand for electrical steel is driven by an uptick in demand for EVs, which is expected to drive exponential growth in demand and production for EVs for the foreseeable future. The material will trade at a premium, and consumers would have to pay it if they wanted access to it. The size of the premium and how long it will remain in place depends on the development of demand growth and how quickly domestic industries can add additional capacities.

To address some of the supply constraints of electrical steel, the domestic steel industry should make investments in the production of material. There needs to be further investment in these products to produce them in North America. This is a product line that is highly valued, where supply is somewhat constrained compared to demand. It will trade at a premium, and there is a significant opportunity for growth.

Klöckner & Co acquired National Material of Mexico (NMM), a service center and materials supplier serving automotive end markets in North America, on August 1, a move Ganem described as a "higher value-added play." NMM has a more of a service center model, as opposed to a purely distribution model, where you're just buying and selling, as opposed to servicing in managing complex supply chains.

Collectively, KMC and NMM will have a presence in the US and Mexico spanning 56 sites. In Mexico, there have been tremendous investments from the EV side, and now being a major supplier in the automotive sector, KMC can contribute and be a key supply chain partner to help drive the electrification of the North American marketplace.


No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

The rate of rent increase for workplaces is determined

Monday, December 4, 2023

30 billion dollars of trade between Turkiye and Saudi Arabia!

Monday, December 4, 2023

Arvedi Group prepares to outsource its operations in Türkiye to a local company

Monday, December 4, 2023

A ferroalloy production plant will be built in Kazakhstan in 2025

Monday, December 4, 2023

TUIK announces November inflation rate

Monday, December 4, 2023
Follow List
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.

There are no news categories you follow
Edit Notification Preferences

Global Iron and Steel Exchanges

Iron and Steel Indices, Price and News

E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now