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Mar 25, 2021 | 03:17 PM | Pittsburgh | Lisa Gordon

Tags  steel, Nucor, Leon Topalian, hollow structural sections, HSS, structural tubing

Nucor has disclosed that Gallatin, Kentucky, will be the site of its planned new tubular mill; the facility is expected to be operational by the middle of 2023.

The Charlotte, North Carolina-headquartered steel producer announced in early March that it intended to construct a $164-million tube mill that will have the capacity to produce approximately 250,000 tons of hollow structural section (HSS) steel tubing, mechanical steel tubing and galvanized solar torque tubing. The capital investment will create 70 full time jobs, the company noted. The strategic location makes sense because the tube mill will be located near Nucor’s Gallatin sheet mill, and hot-rolled coil is used to make some tubular products. In addition, the tube mill creates a customer for some of the capacity coming online from the Gallatin sheet mill’s expansion to 3 million tons per year from 1.6 million tpy. “With our recent investments to expand capacity at Nucor Steel Gallatin and add a galvanizing line, our Gallatin campus is an ideal location to build our new tube mill,” Nucor president and chief executive officer Leon Topalian said in a statement on Thursday March 25. “The new tube mill will allow us to better serve our customers in the construction, infrastructure and renewable energy markets.” The mill is located near “solar markets in the US and the largest consuming regions for HSS steel tubing,” Nucor said. Nucor Tubular Products currently has eight facilities and a total annual capacity of approximately 1,365,000 tons. Fastmarkets assessed the price for steel hollow sections ASTM A500 Grade B domestic, fob mill US at $1,650-1,685 per short ton ($82.50-84.25 per hundredweight) on March 18, up from $1,615-1,650 per ton ($80.75-82.50 per cwt) on March 11 and the highest price since Fastmarkets began assessing the market in late 2008.