US Steel idles tubular plants as oil prices dump – Longview News

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U.S. Steel Corp. pronounced Tuesday it would idle tubular plants in Houston and Ohio and lay off 756 workers, apropos one of a initial U.S. industrial casualties of a new fall in tellurian oil prices.

The plants make steel siren and tube for oil and gas scrutiny and drilling. With oil prices carrying depressed to five-year lows, appetite companies have distant reduction inducement to cavalcade for new supply, shortening direct for a plants’ products.

The association pronounced it would tighten down a plant in Lorain, Ohio, in March, laying off 614 workers. U.S. Steel also will lay off 142 employees who work during a plant in Houston. It pronounced a moves were temporary.

A U.S. Steel tubular plant that employs 1,100 people north of Longview in Lone Star was not affected.

“The association has unexpected mislaid a good understanding of business since of a new downturn in a oil industry,” Tom McDermott, boss of United Steelworkers internal 1104 in Lorain wrote in a minute to workers. “What seemed only a few brief weeks ago as being a prolific year … has many abruptly incited sour.”

The kinship declined serve comment.

The supposed oil nation tubular goods, or OCTG, attention has been built adult extensively in a past few years to yield siren and tube for a bang in drilling for shale gas and new oil in a Gulf of Mexico.

U.S. Steel, that is perplexing to retreat 5 true years of waste has been among those betting many heavily on OCTG. The company’s tubular multiplication posted an handling distinction of $140 million during a initial 9 months of 2014, adult from $23 million over a same duration in 2010.

U.S., French and Chinese companies also have built adult millions of tons of new ability from Ohio to Texas, lured by a resurgent American automobile attention and a country’s sepulchral oil and gas sector.

Oversupply in a marketplace has been exacerbated by outrageous flows of steel imports. Overall imports were adult 35 percent to 38 million tons during a initial 10 months of 2014, according to Global Trade Information Services.

Last summer, U.S. Steel and others won import tariffs on imports of OCTG from South Korea and other exporting countries. But it won’t be adequate to column adult a attention in a face of descending oil prices.

As it followed trade import tariffs, U.S. Steel final year curtailed operations during plants in Bellville, Texas, and McKeesport, Pennsylvania, citing foe from unfamiliar imports.

They have nonetheless to be restarted, a association mouthpiece pronounced Tuesday.

U.S. Steel had about 26,000 employees in North America and 12,500 in Europe during a finish of 2013.

U.S. Steel shares fell only some-more than 3 percent to tighten during $24.58 on a New York Stock Exchange.

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