Ltv Steel News

The downturn in steel production impacted U.S.-Flag lakers’ November iron ore float. The fleet moved 3.9 million net tons of iron ore in November, a decrease of 3.2 percent compared to a year ago, and a drop of 8.8 percent compared to the month’s 5-year average. Not one iron ore cargo was transshipped in November, as the steel mill in Cleveland, Ohio, has idled its blast furnaces. The last time the iron ore trade on the Cuyahoga River was silent during the shipping season was in 2001 when LTV Steel was facing extinction. The decrease in iron ore cargos in November was actually greater than the totals suggest. The fleet experienced significant weather-related delays in November of 2007. The 4 million net tons that moved a year ago were not indicative of demand.

U.S.-Flag lakers hauled 11 million tons of various dry-bulk cargos in November, a slight increase (1.8 percent) compared to last year. With now five straight months of increases, U.S.-Flag carriers have moved nearly 91 million tons of cargo and narrowed the gap between this and last year to 2.2 percent. Iron ore shipments in U.S. bottoms totaled 5 million tons in November, an increase of nearly 17 percent. However, as has been stated before, increases in the ore float are not as impressive as they seem. LTV Steel was in its death throes a year ago; ISG has relit most of LTV's blast furnaces with a resulting increase in demand for iron ore. For the season, U.S.-Flag iron ore cargos stand at 41.8 million tons, a decrease of 1.7 percent.

U.S.-flag Great Lakes vessels hauled 101.3 million tons of cargo in 2002, a slight decrease compared to 2001. Even the one gain - 1.2 million tons of iron ore - is misleading. During 2001, LTV Steel, the nation's third largest producer, was continually reducing its iron ore requirements as it limped toward bankruptcy and then closure. ISG relit those blast furnaces in mid 2002, so the upturn reflects a resumption of production at those facilities in Ohio and Indiana. In reality, the 48.2 million tons of iron ore moved in U.S. bottoms in 2002 represent a decrease of 24 percent compared to 1997. It was in that year that foreign steelmakers, facing contracting markets in Asia, began dumping their excess production in the United States.

For many years the fortunes of the Great Lakes-based shipbuilders and naval architects was based solidly on the building level of the owners who were also based on the 94,000 sq. mi. of water that makes up the five Great Lakes. That is no longer as true a statement as it once was. While there are many projects in this area designed and build by Great Lakes firms for owners in the area, an impressive number of significant commercial market projects as varied as Staten Island, New York ferries and Gulf of Mexico crew/supply boats were designed and or built on the Great Lakes. The Kennedy Class of double ended auto/passenger ferries is one of the most recognizable images of New York City. Every weeknight millions of people see one during the opening of the David Letterman Show.

Dry-bulk cargo movement on the Great Lakes totaled 162.3 million net tons in 2002, a decrease of 1.4 percent compared to 2001 and a drop of 6 percent compared to the 5-year average. Iron ore shipments totaled 58.9 million net tons in 2002, an increase of 5.8 percent compared to 2001, but a decrease of 9.2 percent compared to the 5-year average. North American raw steel production totaled an estimated 101.7 million tons in 2002, an increase of 2.4 percent compared to 2001, but the amount of steel made in Basic Oxygen Furnaces that turn pellets into hot metal fell 4 percent to an estimated 50.1 million net tons. The Lakes iron ore trade was essentially non-stop in 2002.