Despite trade chaos, Barry Schneider upbeat on SDI, steel

With so many years in the industry, he’s seen his share of ups and downs in the business cycle. That gives him an interesting perspective on what’s happening now during this period of tepid demand and tariff uncertainty.

SMU had a chance to sit down with Schneider ahead of his scheduled appearance at Steel Summit in Atlanta in August. Consider this an intriguing appetizer to seeing him in person. We discussed the relevance of decarb in today’s environment, the USMCA, the effects of the U.S. Steel deal, and his market outlook. Oh, and tariffs. They came up as well. (Note: this interview took place before SDI released its Q2’25 earnings results and call.)

There was a lot more that ended up on the cutting room floor, but you’ll have to come to Atlanta to see more. (There’s still time to register for the Summit here.)

Tariffs, USMCA

Of course, front and center these days is the subject of tariffs.

To get a fuller picture, Schneider stepped back to the early 2000s when a wave of bankruptcies swept the industry.

“There were like 56 steel-producing companies in America, and in 2000-2002, ~36 of them went bankrupt or closed their doors,” he said.

So it was in the midst of the mini-mill revolution in the early 2000s that President George W. Bush initiated Section 201 duties, and dumping cases were filed.

Schneider said those were traditional trade mechanisms that take time.

Conversely, President Trump, in his first administration and especially in his second, is moving much faster, often with just the stroke of a pen or a Truth Social post.

While Trump’s actions might be “a little rough around the edges,” Schneider said: “It’s really a way to immediately stop the damage and then sort things out.”

He compared this to the ongoing CORE trade investigation, where SDI is one of many steelmakers involved, and “it took months just to put the data together.” (The US ITC has already made preliminary determinations in favor of the domestic industry.)

That case targets 10 countries, including Canada and Mexico. US trade negotiations are ongoing with the USMCA partners, as they have now been subject to Section 232 duties and other import tariffs.

“People just thought, ‘Why would you do that to our neighbors?’” Schneider said. “And I’m like, ‘Well, why are our neighbors bringing in Chinese steel and Russian slabs?’ That’s outside the rules.”

Still, Schneider is hopeful a deal will be struck with our northern and southern neighbors, as SDI has especially close ties with Mexico.

“We’ve been active down there for 20-some years, primarily at the beginning with our recycling company, OmniSource, the largest recycler in North America,” he said.

Additionally, SDI purchased a couple of Mexican recycling companies “to make sure it’s our assets down there, that we have better control.”

On the aluminum side, “I think the concern we have is with the aluminum slab facility down in San Luis Potosi.”

Recall that aluminum is also covered by Section 232 tariffs. (For more info on SDI’s aluminum plans, click here.)

SDI, as a member of the Steel Manufacturers Association (SMA), is part of an ongoing dialogue with the Trump administration aimed at bolstering relations among all three USMCA countries.

“So, yeah, I look forward to it becoming even more supportive of all three nations,” Schneider said.

USS/Nippon deal

Something the steel industry had been waiting for since December 2023 was the outcome of Japan-based Nippon Steel’s play for U.S. Steel. With the deal recently closed, Schneider praised Nippon as a “great steelmaker,” but still had some concerns. Many of these revolved around the US government’s so-called “Golden Share” in USS.

“If nameplate capacities have to be maintained, if workforces have to be maintained, I think there are definitely concerns out there,” he said.

Schneider emphasized that he was speaking “not as a competitor, but as a customer.” He noted that SDI buys about 2 million short tons of flat-rolled steel each year for its own operations, and “the vast majority of that is domestic.”

“We buy from almost all of our competitors, and we buy in a way that is responsible. It’s market-driven pricing,” he added.

The idea that the US government should safeguard the steel industry for national security reasons is a sound one, according to Schneider. But he pointed out that when ArcelorMittal bought Sparrows Point and other US domestic steel assets, there wasn’t as much of a fuss.

“I think just the fact that it’s named ‘United States Steel’ changed everything here,” he commented.

GSCC and decarb

Whatever happens on the M&A and tariff fronts, Schneider believes decarbonization still has a significant role to play in the domestic steel landscape.

Recently, SDI marked a milestone in certifying products at each of its steel mills through the Global Steel Climate Council (GSCC).

Last year, the company certified its greenhouse-gas emissions intensity targets for its steel mills with GSCC’s standards.

In fact, SDI was one of the founding members of the GSCC.

Schneider stressed that the GSCC standards are science-based, include interim targets, and are not just about some far-off day in the future like 2050.

He said the ethos is that “carbon is important to us now, and this is a way to make sure that today is good, and tomorrow’s better.”

“We’re not creating new rules,” he emphasized. “We’re not just saying don’t penalize us because we’re already 86% scrap.”

With all the current attention on tariffs and global trade, is decarbonization still an important issue? “Absolutely,” Schneider said.

And the US has a leg up in this area compared to other regions, like Europe.

“It was because our industry was totally reworked from the ashes in 2000, and this is a lower investment rate. It’s a more efficient model, the mini-mill model of resources,” he noted.

The prevailing steelmaking conditions in different regions also mean there’s not a one-size-fits-all solution.

That is, what will work for Europe, which is predominantly blast-furnace based, will look a lot different than what will work for the US, which produces about 70% of its steel from EAFs.

The question remains: Will customers in the US be willing to pay a premium for green steel?

“I think people value it,” said Schneider. “I think it’s a way of having a dialogue with your customer about what’s important to you. And some of these customers are very, very much invested in this.”

He pointed to construction and automotive as two sectors with exceptional interest in green steel.

Summing up

Looking ahead, Schneider is optimistic about the back half of 2025, especially demand for automotive steels, which he believes has been stoked by the tariffs.

“It’s been really good,” he said. “I want to understand how those auto supply chains are going to get reconfigured. And I think time will tell. I don’t think there’s an immediate answer coming.”

In this environment, he said SDI is always striving to better serve its customers: “Whether it’s aluminum or steel or SBQ, we’re trying to understand, what do you need from us as you make your supply chain decisions?”

And he’s excited about where things are going. “I just want to make sure that as a company, my teams are addressing those needs.”

Schneider said during the first 15 years of his career, “Everything was leaving, and that was grim.”

From energy policy to environmental policy, issues are now being tackled in a way that supports the domestic steel industry.

“So now we’re on the upswing, and I’m excited about it,” Schneider said. “Remove uncertainty, and you can make a path to invest in, and let your shareholders know the plan.”