North American Stainless hits supply snag

The Ghent, Kentucky, North American Stainless (NAS) mill is reportedly reducing output at its melt shop because of difficulties in obtaining industrial gases that are part of its production process.

A July 10 news item by Bloomberg indicates NAS sent out a letter to suppliers and customers declaring “force majeure at its Kentucky mill because it can’t get enough of the industrial gases it needs.” (Force majeure is invoked by companies citing unforeseeable circumstances as a reason preventing it from fulfilling one or more contracts.)

NAS, a division of Spain-based Acerinox SA, produces about 40 percent of the stainless steel made in the United States, according to Bloomberg.

The NAS force majeure letter, seen by Bloomberg, indicates the company has “declared a suspension of all performance obligations” and an indefinite delay on deliveries of stainless products made at the Ghent mill. NAS also says in its letter it is “working to make alternative arrangements to meet its obligations,” writes Bloomberg.

In a document posted to its website, NAS says the stainless steel made in Ghent consists of 81.7 percent recycled (scrap) content. Its melt shop capacity in Ghent is 1.4 million tons annually, according to a 2018 Modern Metals article.