Trade Cases

Letter to the Editor: Trader Sees Damage to Mills from Section 232
Written by Tim Triplett
September 4, 2019
Steel Market Update received the following letter from a trading company executive and we thought it should be shared with our readers:
I was just reading your article concerning Section 232 and came up with the following short conclusions:
The damage of Section 232 to the integrated mills is done. The windfall profit reaped by the mills in 2018 has been reinvested by Nucor, SDI, Big River and North Star Bluescope in new modern capacity, thereby expediting the demise of old inefficient facilities. The restart of already shuttered older mills only added to the problem.
If the purpose of Section 232 was truly for national security reasons to keep a financially healthy steel industry, then the jury is still out on the success of the program. Yes, more modern production will come on stream in the U.S. (and North America), and that is a good thing. Nevertheless, steel mills die hard, and Nucor, SDI, et al, will have to be patient to reap the benefits of their quick action as they will have to endure the steel downturn that is more than likely coming as inefficient excess capacity will need to be taken out of the market (again). As for the integrated mills, Section 232 did not do them any favors that I can see.
I really doubt that import levels will change much going forward, regardless of what happens with Section 232, or even the dumping suits that will likely follow.
Trading Company Executive
(name withheld on request)
You are welcome to comment. To do so send your comments to info@SteelMarketUpdate.com

Tim Triplett
Read more from Tim TriplettLatest in Trade Cases

Leibowitz: With ‘reciprocal’ tariffs struck down again in court, what happens next?
President Trump’s “reciprocal” tariffs under the International Emergency Economic Policy Act (IEEPA) were struck down again, this time on Aug. 29 by the Court of Appeals for the Federal Circuit (CAFC). The legal and policy mess continues, with the next stop being the US Supreme Court.

Market unfazed by US circuit court’s IEEPA decision
Repealing any reciprocal tariffs placed by President Donald Trump on US imports of direct reduced iron (DRI), iron ore, hot-briquetted iron (HBI), and pig iron would have only a nominal impact on the US steel market, market participants said.

ITC votes to keep HR duties after sunset review
The US government determined this week that hot-rolled steel imports from a handful of countries continue to threaten the domestic steel industry.

Steel Summit: Zekelman advocates for ‘Fortress North America’
Barry Zekelman has a unique vantage point from which to view today’s trade landscape. A Canadian national who owns operations in both the US and Canada, he has also had dialogue with both Canadian and American administrations.

Steel Summit: Execs urge clarity on trade/tariff policy, want stronger USMCA
Tariff policy dominated the discussion of the SMU Steel Summit trade panel on Tuesday afternoon. The message was clear: uncertainty is rattling the steel supply chain.