Steel Dynamics idling Minnesota iron operations for at least two years

“With this action, we are actively responding to the unprecedented decline in iron ore pricing, which recently led to an extreme decrease in pricing for pig iron, our end product,” Mark Millett, CEO, said in a statement. “Current global currency dynamics and world iron ore supply/demand factors support lower pig iron prices. We currently do not see strong drivers that would suggest a reversal of this trend for some time. Our Minnesota operations were intended to serve as a hedge to high pig iron and scrap prices. While this lower raw material cost environment certainly advantages our steel operations, it has resulted in an uneconomic situation for our iron nugget operations.”

The closing of the Mining Resources and Mesabi Nugget operations will mean the elimination of 200 jobs at the facilities in Chisholm and Hoyt Lakes, Minn. A small group of workers will be retained for site and facility maintenance.

Based in Fort Wayne, SDI employs 7,700 at manufacturing, metals recycling and other facilities.