Steel Mills
Would Anti-Dumping Move Your Company to Buy More Domestic Steel?
Written by John Packard
June 9, 2015
Steel Market Update conducted our flat rolled steel analysis (survey) last week. We began the process on Monday (June 1st) and approximately 90 percent of the responses were made prior to the filing of the anti-dumping and countervailing duty suit on corrosion-resistant steel (galvanized, Galvalume, galvanneal, aluminized, etc.).
We invited approximately 600 companies to participate which is normal for one of our questionnaires. Of the companies who responded, 47 percent were manufacturing companies, 34 percent were service centers, 9 percent were trading companies, 6 percent steel mills and 4 percent were toll processors.
One of the questions asked early in the survey process was if any anti-dumping filing would impact the company’s buying patterns and move them to purchase more domestic steel. Sixty percent of the respondents reported that it would not make a difference while 40 percent indicated that they would increase the volume of purchases with the domestic steel mills.
This question received a large number of comments and we thought our readers would be interested in seeing what a portion of our respondents had to say on the subject (especially when you consider that these responses were made literally hours before the AD/CVD suit was filed):
“Yes, we will buy more domestically, but we are actively pursuing other offshore supply chains. If domestic prices stay low, we may be able to buy at home.” Manufacturing company
“That is obvious. It will also depend on what other countries are available to import to U.S.” Service center
“Buying very little foreign already.” Service center
“We are only purchasing foreign where necessary based on product requirements, we are not buying generic foreign based on price.” Service center
“A lot of unknown at this point to fully answer but I do see this having some impact on our buying patterns.” Manufacturing company
“Filing itself will not likely, but this would impact pricing at some point, which would then impact our buying in a more domestic direction.” Manufacturing company (Canada)
“Yes – With most of our material purchased from service centers we would be forced to buy more steel as they would be able to justify a significant price increase due to new ‘reactive’ demand.” HVAC Wholesaler
“We have simply shifted our purchases to non targeted foreign suppliers.” Service center
“Our company was not buying much foreign material anyway. It will just raise prices in the US market and keep domestic manufacturers less competitive in a world market.” Manufacturing company
“We are heavily import still (non-NAFTA) on CR and GALV products. We would have to buy more domestic steel as well as shift some CR buying to Mexico.” Manufacturer
“Will I have a choice? I have to buy as competitively as I can. Will probably move more to our Mexico plant who will be able to get the foreign steel at a much better price.” Manufacturing company
“Head off foreign purchases. Depends on how widespread the filing is.” Manufacturing company
“On light gauge especially.” Trading company
“N/A- domestic mill. Purchasers would buy more domestic if a suit is filed though.” Steel mill
John Packard
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