Texas Steel Plant Faces Operational Challenges: Declining Electric Arc Furnace Activity

Introduction

The CMC Steel Texas plant, located in Texas, USA, is owned by CMC Steel and has an annual production capacity of 943,000 tonnes of crude steel. The facility produces a range of finished rolled steel products, including rebar, channels, and equal angles, catering to key sectors such as building and infrastructure, energy, and transportation.

Activity Changes Over Time

Recent observations indicate a significant decrease in the activity of the Electric Arc Furnace (EAF_1), which is the primary equipment at the CMC Steel Texas plant. The percentage of thermal activity has experienced a sustained decline from 56% in November 2024 to 41% by May 2025. This decline correlates with broader market disruptions affecting steel production, as indicated by ArcelorMittal’s report highlighting trade disruptions and other challenges impacting demand growth.

The data reflects a concerning trend of operational instability that may affect the supply of finished steel products.

Implications for Steel Buyers and Market Analysts

The observed decline in EAF activity poses significant implications for steel buyers and market analysts. As companies like US Steel report decreased shipments and production challenges, the ripple effects may lead to tighter supply conditions and potential price increases. Given the ongoing global trade disruptions and the cautious outlook shared by ArcelorMittal regarding demand, stakeholders in the steel market should remain vigilant. The operational shifts at the CMC Steel Texas plant could represent a microcosm of broader market dynamics—implying potential bottlenecks that may influence pricing and availability in the coming months.