Steel Mills

Nucor Responds to SMU Question Regarding Possible Trade Case
Written by John Packard
November 5, 2014
Over the past few days, Steel Market Update has received a number of inquiries from steel buyers who were upset that they are being put into a position where they have to consider buying foreign steel rather than domestic due to the pricing disparity between the two products.
A Midwest service center buyer reported that the trading companies were, “Cranking up the Chinese machine again,” and offering cold rolled and coated products. He told SMU, “We are at a crossroads, do the mills file or don’t they file [trade suits]? We have to assume that they won’t and we need to buy accordingly.”
Steel Market Update has been reporting the rise in foreign imports which are poised to reach never seen before levels by the end of this year. The AISI just reported October finished steel imports as being 31 percent of the apparent steel supply for the month. This is a very high, if not record percentage.
So, we asked Nucor if they would comment on what is being perceived as a “passive” approach to imports of foreign cold rolled and coated products. Their trade counsel, Alan Price of Wiley Rein LLP, responded to our request with the following:
“Nucor is very concerned about the recent volume of cold rolled and galvanized imports flooding our market, and are fully committed to pursuing all available remedies in response to this surge.
“Imports of cold-rolled have increased by more than 80% this year, with China being the primary offender (Chinese imports are up by more than 200% YTD). Imports of galvanized products are up 50% this year, with China again being the number one source of the import surge. Taiwan, India and Korea have also significantly increased shipments of galvanized product to the U.S. market this year. These imports are having a negative impact on Nucor and other flat rolled producers – taking sales away from domestic producers and suppressing U.S. prices.
“I reject the notion that the domestic industry is taking a “passive approach” and lacks the commitment to deal with this import surge. To the contrary, Nucor is actively pursuing every available option.”
SMU Note: Stay tuned.

John Packard
Read more from John PackardLatest in Steel Mills

Nucor names Batterbee, Bledsoe to HR roles
Nucor Corp. has promoted Thomas J. Batterbee to the position EVP of human resources and talent and appointed Elizabeth Bledsoe to the newly created position of president of human resources and talent.

Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.

USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.

SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.

POSCO inks MoU with Hyundai on Louisiana EAF mill
POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.