Steel Mills

JSW Slab Boycott Lawsuit Dismissed with Prejudice by Texas Court
Written by David Schollaert
February 24, 2022
JSW Steel (USA) and JSW Ohio’s lawsuit claiming Nucor, U.S. Steel and Cleveland-Cliffs conspired to stifle competition by denying semifinished steel slab to the company has been dismissed.
The lawsuit, filed on June 8, 2021, in federal court in Houson, alleged that three of the largest American steelmakers formed a cartel and conspired to cause direct harm to JSW by refusing to sell slab to its U.S. pipe- and plate-making operations after the Trump administration levied Section 232 tariffs on imported steel.
U.S. District Judge Keith P. Ellison, from the Southern District Court of Texas, last week dismissed all of JSW’s claims with prejudice. As a result of the ruling, JSW cannot refile the same claim again in that court.
“We greatly respect the court’s decision to dismiss JSW’s entire baseless case,” a U.S. Steel spokeswoman said. “The court saw right through JSW’s false claims that we and other American steelmakers refused to sell JSW steel slabs and conspired to advocate for and defend the Section 232 national security action on steel imports.”
“We are pleased with the judgement rendered,” a Cliffs spokeswoman said.
JSW and Nucor didn’t immediately respond to requests for comment.
Though initially a supporter of Section 232, JSW wound up suing the U.S. government in 2019 for relief. The company said that the Commerce Department wrongfully denied its request for exclusions and forced it to pay tens of millions of dollars in tariffs. Domestic mills also filed objections with Commerce to oppose JSW’s exclusion requests.
Last year’s complaint against U.S. Steel, Nucor and Cliffs was based upon federal antitrust laws and Texas state laws. JSW alleged that the defendants used “anticompetitive tactics against smaller producers like JSW to succeed at all costs.”
Judge Ellison said JSW failed to prove a conspiracy and any antitrust injury.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Mills

BREAKING NEWS: Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.

CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.

USS swings to loss in first quarter on N. American flat-rolled segment woes
U.S. Steel CEO praised the company’s resilience, “despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices.”

Nucor gives updates on new capacity coming online
Nucor said several of its capital projects will start operations within the next year and provided an update on them.

Algoma swings to loss on ‘market challenges’ and ‘tariff uncertainties’
Canada’s Algoma Steel swung to a loss in the first quarter amid "market challenges," and the company now expects first steel production from its first EAF in the second quarter.