St. Lawrence Iron Ore Shipping Down 66 Percent

The idling of North American steel plants is giving the St. Lawrence Seaway a hard traffic season, with tonnage through July 31 down 37.7 percent to 12.2 million metric tons from 19.5 million in the period last year.

Iron ore for the steel plants was down a huge 66.4 percent from the period last year, to 2.5 million metric tons from 6.5 million.

Prospects for a lifting of demand soon are not bright, either. Steel plants in both countries have shut down furnaces and laid off thousands of employees. Layoffs have caused U.S. Steel problems with the Canadian government. The American firm is being sued by the Canadian government in the Federal Court of Canada for allegedly breaking its promise to keep employees working after it bought out a main Canadian steel company in 2007.

U.S. Steel laid off some 800 workers at its Nanticoke, Ontario, facility, prompting the federal court case, and on Sunday night locked out the 150 workers remaining there. It cited “substantial disagreement on a number of issues (in contract talks with union employees), necessitating our lockout decision.” The company laid off workers at its Hamilton, Ontario, plant as well, but has been recalling them.

Coal for steel mills and other plants was down 35.4 percent to 1.1 million metric tons of cargo in the Seaway season thus far, from 1.8 million tons. Other bulk was down 36.9 percent and general cargo down 45.4 percent. The one category to show an increase was grain from the United States and Canada, up 16.3 percent to 3.2 million tons from 2.8 million.

Contact Courtney Tower at ctower@sympatico.ca.