PITTSBURGH, Dec. 21, 2015 /PRNewswire/ -- United States Steel Corporation (NYSE: X) ) announced today that it will postpone construction of its Electric Arc Furnace (EAF) at its Fairfield Works in Birmingham, Ala., due to continued challenging market conditions in both the oil and gas and steel industries.
On Dec. 14, 2015 oil prices hit an eight-year low in the same week that rig counts dropped by another 28 to a 16-year low of 709. The company continues to feel the effect of these energy market conditions, along with low steel prices and continued high levels of imports. In order to combat these continued challenging global market conditions, U. S. Steel has made the decision to postpone the construction of the 1.6 million net ton EAF facility at Fairfield Works in Birmingham, Ala., until market conditions improve.
The postponement of the construction EAF will not impact the company's ability to serve its customers across all sectors as U. S. Steel will continue to operate the Fairfield pipe mill, and its steelmaking operations in Indiana, Michigan and Pennsylvania. Fairfield's #5 coating line and the Double G hot-dip galvanizing joint venture in nearby Jackson, Miss. will continue to operate.
SOURCE United States Steel Corporation