North American Steel and Aluminum interests had more going on this week than the White House joining the campaign to keep the Japanese out of Pittsburgh. U.S. producers of corrosion resistant steel petitioned for relief, while the International Trade Commission extended the protections for common alloy aluminum sheet from China. Up North, Ottowa imposed 25% tariffs on Chinese aluminum,
After generations of insensitivity to public opinion and community sensibilities, U.S. Steel got its comeuppance with both President Biden and Vice President Harris indicating that they would support the Committtee for Foreign Investment in the U.S.(CFIUS) denying the firm's sale to Nippon Steel. The USW took offense at a percieved snub by the suitors, hence the kibosh.
CFIUS appears to have concluded the sale would raise national security concerns that could not be mitigated, according to published reports.
Nippon and US Steel have not been notified of a decision.
According to a report from Jiji Press news service in Tokyo, Nippon said that a majority of board members of US Steel will be US citizens following completion of the acquisition. US Steel's board will include three independent directors who are US citizens and the company's core senior management members will be US citizens, Nippon Steel said according to Jiji Press.
Alan Beattie of the Financial Times notes: One big reason for the decision appears to be the administration’s concern that a Nippon-run US Steel company, being foreign-owned, would be less willing to support trade remedy cases (antisubsidy/antidumping/safeguarding) against imports. Nippon Steel has tried in vain to argue (hat tip to the great Amy Porgesfor spotting this) that it’s prepared to wheel in a bunch of US citizens to become as knee-jerk protectionist as any American company would be, but to no avail.
The Wall Street Journal reports that U.S. Steel CEO David Burritt warned the company would close steel mills and likely move its headquarters out of Pittsburgh if its $14.1 billion sale to Nippon Steel collapses.
The United Steelworkers union and US steel producers, including Steel Dynamics Incorporated are seeking relief from under-priced and subsidized imports of corrosion resistant flat rolled steel from Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, UAE, and Vietnam.
In petitions filed with the Commerce Department and International Trade Commission, the groups allege that imports from the ten countries are being dumped on the US market and subsidized in the case of Brazil, Canada, Mexico and Vietnam.
The company was joined by four other organizations in at least one or more of these cases.
“Between the first half of 2023 and the first half of 2024, imports of CORE from the ten subject countries surged from less than 1.25 million tons to almost two million tons, a significant 57 percent increase.” according to Steel Dynamics President and Chief Operating Officer Barry Schneider.
The USITC determined that countervailable subsidies were provided to producers and exporters of common alloy aluminum sheet (CAAS) from the People's Republic of China during the period of review (POR), AD/CVD orders will be continued for (at least) an additional five years (through the summer of 2029).
North American aluminum interests applauded a plan announced today by the Canadian government to impose a 25% tariff (or “surtax”) on certain aluminum and aluminum products imported from China. Pending a public review and comment period, the tariffs are slated to be implemented by October 15.
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