Steel Mills
Biden decision on USS/Nippon deal due by Jan. 7: Report
Written by Ethan Bernard
January 2, 2025
The Biden administration faces a Tuesday, Jan. 7, deadline for a decision on the Nippon Steel/U.S. Steel deal, according to a Dec. 31 article in The Washington Post.
Meanwhile, the Japanese steelmaker sent a document to the White House on Monday saying it will give the government veto power over any cut in U.S. Steel’s “production capacity,” the article said.
This offer comes as the Committee on Foreign Investment in the United States (CFIUS) recently delivered a split decision on whether the deal poses a national security threat. That gives President Biden the final decision on the fate of the transaction.
The $14.9-billion deal was first proposed over a year ago in December 2023. Since that time, it has faced growing opposition from politicians, including both Biden and President-elect Trump.
Also, from the deal’s first announcement, it has been vociferously opposed by the United Steelworkers (USW) union.
USW jeers
The union released a letter on Thursday responding to the reported Nippon offer to the White House.
“According to the press, Nippon says it will allow capacity to be monitored,” the letter said.
However, the USW said the Japanese steelmaker “fails to commit to maintaining production for the long term or actually strengthening domestic capacity in integrated facilities.”
The letter continued that protecting capacity “only means mothballing our equipment, allowing it to rust away to the point that it is no longer feasible to re-start.”
It concluded that this attempt is nothing but a “’Hail Mary’ pass destined to fall to the ground.”
The letter was signed by USW International President David McCall and District 7 Director and Chairman of the USW negotiating committee Mike Millsap.
A request for comment from Nippon was not returned by time of publication.
Ethan Bernard
Read more from Ethan BernardLatest in Steel Mills
Pacific Steel breaks ground on California rebar mill
Pacific Steel Group has broken ground on its Mojave Micro Mill in Southern California.
Nucor lifts weekly HR spot price to $915/ton
Nucor has increased its weekly HR coil spot price for seven consecutive weeks.
American mills urge Trump to maintain no exceptions on steel tariffs
"We urge you to resist any requests for exceptions or exclusions and to continue standing strong on behalf of American steel," the companies wrote.
Cliffs CEO touts employee cash bonus for buying US-made vehicles
Cleveland-Cliffs Inc. has introduced a new employee incentive program to promote American-made vehicles, support domestic production, and strengthen US supply chains.
Auction of AHMSA assets is next step in bankruptcy proceedings
An inventory valuation of the assets of Altos Hornos de Mexico SA (AHMSA) has been completed. Local reports suggest an auction for the assets of the bankrupt steel company could come as soon as the end of this month.