Final Thoughts
Final Thoughts
Written by John Packard
August 17, 2015
It was very sad to hear of the passing of John Correnti earlier today. Mr. Correnti at 68 years old still had much to give to the steel industry and his Big River Steel mill will only be but one part of his legacy. The steel industry is buzzing on the news and I have received many texts and emails expressing sympathy for his family and the BRS team he put together. There is much less time to make your mark than we sometimes think. In 68 years Mr. Correnti made a big, lasting impression on this industry and he will be missed.
We saw our first potential “crack” in the antidumping suits as the US Department of Commerce did not find reason for CVD on cold rolled from the Netherlands and the United Kingdom. The AD investigation will continue but, it is not a slam dunk that the mills will prevail against all the countries alleged to have dumped steel in the U.S.
I have heard that a number of traders are continuing to take orders from some of the affected countries feeling very strongly that those countries will be cleared of the dumping of countervailing duty allegations.
I have suggested that our readers watch the ATI contract negotiations (and now lockout) very carefully. Do not be surprised if at least one mill (and the rumor mill is it will be US Steel) could potentially lockout their workers if they are not willing to give on some of the line items that the mills have requested.
Earlier today I spoke with the owner of a service center about labor negotiations and how difficult negotiations can be. “When somebody has something it is very hard to take it away,” is what he told me. The unions are in a tough spot. It will be very hard for them to give in easily to the mill demands without at least putting up a fight.
I also have to go back to the owner of a manufacturing company who told me a few days ago, “People don’t strike anymore unless someone draws a line in the sand and forces the issue.”
USS fought the unions in Canada and won (although you might say ultimately they lost as the mills are in bankruptcy and for sale). Will they go toe to toe with the USW this year?
We are in for a very interesting remainder of the summer and through the balance of the year. Expect the unexpected.
For those attending our Steel Summit Conference in Atlanta we are very close to actually selling out the space that we have for the conference. For those who were there last year and can remember the rooms we have added one third more space and it will all be full this year. This is not to say that we can’t squeeze in one or two more people should they want to come… Details are on our website here.
We have added base metals forecasting to this year’s conference. With zinc trading at the lowest levels seen since 2012 Lisa Reisman’s of Metal Miner forecast couldn’t come at a better time.
For those of you interested in our Steel 101: Introduction to Steel Making & Market Fundamentals workshop – our next one is October 6-7 which is a great time to be in the lovely state of Iowa. We will tour the SSAB facility located just outside of Davenport, IA where our workshop will be centered. Please contact me if you have any questions. We offer SMU member discounts and more than one person attending discounts. You can reach me at 800-432-3475 or John@SteelMarketUpdate.com
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Publisher
John Packard
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Final Thoughts
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Final Thoughts
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Final Thoughts
President Donald Trump on Sunday hammered Colombia with 25% tariffs and threatened to increase them to 50%. Trump in a post on Truth Social said he took the action not because of a trade dispute but because the South American nation had refused to accept planes carrying deported immigrants. The president also cited "national security" concerns, just as he did to justify 25% Section 232 tariffs on steel in his first term. Even the 50% threat echoes his first term. Turkish steel, like that of most nations, was assessed a 25% tariff in March 2018. Trump doubled Turkey's tariff to 50% via a tweet in August of that year over a matter unrelated to steel.
Final Thoughts
We surveyed many of you this week and asked what you wanted to see from the new Trump administration. Responses were varied but fell largely into three groups: tariffs and trade policy, the Nippon-U.S. Steel deal, and those who are concerned about too much government sway in steel. Some also expressed hope that President Trump would continue the infrastructure spending that began under former President Biden.
Final Thoughts
Sometimes new presidential administrations hit the ground running. No time for change like the present. And sometimes new administrations blast off on a SpaceX rocket bound for Mars. There’s a big universe, and we’ve got a lot of flags to plant. Such seems to be the case with the new Trump administration.