Plant Shutdown To Impact AK Steel Holding Corporation (NYSE:AKS)
On Tuesday, AK Steel Holding Corporation (NYSE:AKS) conducted its quarterly-earnings call. On the call, the company said that its blast furnace at the Middletown Works could not reach 100% production-capacity till the current month. This plant is the company’s largest steel-plant and had faced a mechanical-failure in 2013 June.
Consequently, the plant had to be shutdown and the company was not manufacturing any new steel there. Around three weeks post that incident, the furnace was back on line said the Chairman, President & CEO of the company, James Wainscott. This particular blast furnace is the segment of this unit where iron-ore, fuel and limestone are first heated and then run through a reduction procedure to produce hot metal. Wainscott said that the furnace has been functioning fairly well since that time though not up to the expected levels and that it has not been able to touch 100% production capacity in the Q3.
At the start of October, there had also been a 3-day long outage to discuss this shortfall in productivity. He said that they are now back to 100% production-capacity on this furnace. This downtime of the Middletown furnace brought down AK Steel Holding Corporation (NYSE:AKS)’s blast-furnace production and also impacted the overall steel shipments in the previous quarter said the company.
This also resulted in a rise in the production costs /ton of steel. AK Steel Holding Corporation (NYSE:AKS)’s steel segment was unable to realize the complete benefit of the price-rises in the carbon steel spot market in the July-September quarter due to production limitation and delays.
In Tuesday’s trading, AK Steel Holding Corporation (NYSE:AKS) dropped by 1.97%. The opening price of the shares was $4.19, which climbed to an intraday high of $4.22 and dipped to a close of $3.98.