Colorado steel mill halts rail shipments to BNSF and UP
a day ago
- #steel-industry
- #railroad
- #legal-dispute
- BNSF Railway and Union Pacific sue Orion Steel’s Rocky Mountain Steel Mills for breaking long-term rail supply contracts by demanding over 50% price increases.
- Railroads argue the halt in shipments threatens safety and service, citing lack of domestic alternatives and long lead times for foreign rails subject to tariffs.
- Rocky Mountain Steel defends price adjustments as necessary to maintain operations, referencing the closure of Steelton, PA, the only other dedicated rail mill in the U.S.
- UP and BNSF allege contractual breaches, missed milestones in a new $500M rail facility, and operational disruptions due to halted shipments.
- Rocky Mountain Steel claims lawsuits lack merit, emphasizing the importance of domestic production and market-based pricing to avoid plant closures.
- Historical context: Pueblo mill’s struggles with foreign competition, past tariffs, and UP’s shift between domestic and imported rail sources.