IH4 idling validates CLF HBI NG productivity upgrades.
Since buying the bulk of US blast furnaces at bargain basement prices, CLF has centered its path forward on going greener by upgrading its blast furnaces to accommodate HBI and by adding natural gas to reduce iron ore with hydrogen generated in process flows from natural gas. This is being coupled with adding scrap to BOFs to replace some of the iron melt from blast furnaces. These upgrades are increasing BF productivity by 10-15%, lowering coke needs and decreasing CO2 emissions.
The Sep-Oct upgrade at Indiana Harbor 7 increased daily output from 11,000 tons to 12,500 tons, adding 500,000 tons of annual output. IH7 is the largest BF in the Western Hemisphere and this upgrade (and the use of scrap from the FPT acquisition) is making the idling of IH4 possible. Clearly, CLF has seen excellent process results from the IH7 upgrade over the past several months.
Middletown BF was upgraded in March of 2021 with a similar productivity increase, Cleveland BF#5 is going down for 100 days starting in March for a similar upgrade.
CLF has closed 30% of acquired blast furnaces without cutting overall production and lowing emissions in the process. They operate the greenest blast furnaces on the planet and they are doing this at full scale and are becoming the lowest cost US steel producer in the process.
