Northshore Mining to Idle

[Denny]

I agree totally with everything you had to say Guest and your comments as well. As for a possible recession? I’m hearing from my brother we may be headed for one either late this year or else sometime in 2023 then at that point. I think this year’s shipping season could start out ok but, by the second half of this year it could get interesting then as we’ll have to wait and see? I would look then for next year in 2023 to be a rough go for the ships and their companies along with their customers? Most of the ships that sailed in 2021 season I would expect to see them return again for 2022. However, I’d also look for several ships in 2023 maybe to be sitting at the wall if the economics get bad enough and we go into a recession then. Again, we’ll just have to watch and wait and see on that!

[Guest]

I would imagine shipments from Silver Bay to begin tapering off to a stop during the second half of the upcoming shipping season. The signs are that there will be a softening in demand for steel as we get deeper into 2022. Along with other economic indicators such as increasing inflation to record levels and the continued general decline in the stock market over the past several months it is reasonable to believe that we are already in the early stages of a recession. Unfortunately, the steel industry is usually one the earliest to be hit by recessions and among the last to fully recover. I would not expect to see a strong shipping season this year.

[Mr Link]

Cliffs also announced Friday that it was shutting down one of its coke producing plants. (all 4 batteries at Mountain State Carbon in Follansbee WV on the Ohio River.) Which to me signals that Cliffs sees a softening demand for blast furnace feed stock (iron ore, coke and limestone) and a bigger demand for electric arc feed stock (scrap, pig iron and hot briquetted iron).

Northshore is scheduled to shut down in May. Assuming they have a stockpile, they still may ship for much of 2022.

[Denny]

Wow that's definitely not good news I would think? If Northshore Mining is closed down or shutdown for any length of time then in 2022, might it be possible then to see a few lakers sitting idle at the wall this season? Might see more loads and traffic then as far as loadings go in Duluth along with Superior and Two Harbors I would think? Just my thoughts.

[clarkjol]

Trains magazine is quoting Cleveland Cliffs will idle Northshore Mining and Silver Bay processing plant for 2022. Cliffs is using scrapped steel and Cliffs has to pay a "fee" for mining ore in the Northshore's territory.