Cleveland-Cliffs and the United Steelworkers Union Jointly Comment on the Tin Mill Products Final Report Released by the ITC

Rhea-AI Summary

The U.S. International Trade Commission issued a negative injury determination in the tin mill products trade case brought by Cleveland-Cliffs and USW, leading to the continuation of unfair trade practices. Lourenco Goncalves highlighted U.S. Steel's lack of cooperation as a key factor in the negative outcome, impacting the domestic industry and workers.

Positive

• None.

Negative

• Continuation of unfair trade practices in the tin mill products market
• Negative impact on the domestic industry and workers due to U.S. Steel's lack of cooperation with the ITC

Insights

Trade Law Expert

The ITC's negative injury determination in the tin mill products trade case is a significant event for the industry. It essentially means that the anti-dumping and countervailing duties proposed by the Department of Commerce will not be enforced. This has implications for the domestic market, as it could potentially lead to a continuation of what Cleveland-Cliffs and the USW describe as 'unfair trade practices.' In the context of trade law, anti-dumping and countervailing duties are mechanisms designed to protect domestic industries from foreign competition that is considered to be traded unfairly, either due to being sold below market value (dumping) or being heavily subsidized by governments (countervailable subsidies).

From a legal perspective, the lack of participation by a key industry player, such as U.S. Steel, in the investigation process could indeed impact the ITC's ability to gather comprehensive data. The absence of critical information can lead to an incomplete understanding of the market dynamics and may result in decisions that do not fully address the concerns of domestic producers. The decision underscores the importance of cooperation and thorough data provision in trade investigations to ensure that the ITC can make informed decisions.

Economist

The decision by the ITC has broader economic implications beyond the tin mill products sector. By not imposing the recommended duties, the domestic market remains open to imported tin mill products, which could lead to increased competition for domestic producers. On one hand, this could benefit consumers through potentially lower prices due to the competition. On the other hand, it might negatively impact domestic producers like Cleveland-Cliffs, potentially leading to job losses and economic downturns in communities dependent on this industry.

Furthermore, the surge of imports, especially from countries with lower production costs like China and Japan, can exert significant pressure on the U.S. tin mill industry. If domestic producers are unable to compete effectively, this could lead to a long-term decline in the industry and a loss of domestic capabilities in this sector, which may have strategic implications for the U.S. economy.

Market Research Analyst

The tin mill products market is a niche but vital part of the metals industry, supplying material for packaging, automotive components and electronics. The ITC's decision could shift market dynamics, influencing not only the domestic supply chain but also the pricing and availability of tin mill products. Market research would focus on tracking import volumes, pricing trends and the response of domestic producers to these changes.

From a market perspective, it's important to monitor how Cleveland-Cliffs and other domestic producers adapt to the competitive pressures. Will they seek cost reductions, innovate to create higher value-added products, or lobby for political support? These strategies will determine the market's direction and the future health of the domestic industry. Additionally, the decision may influence investor sentiment towards the metals sector, particularly affecting companies like Cleveland-Cliffs that are directly involved in the trade case.

 

CLEVELAND--(BUSINESS WIRE)-- The U.S. International Trade Commission (ITC) this week issued public documents detailing the rationale behind its unanimous negative injury determination in the tin mill products trade case brought by co-petitioners Cleveland-Cliffs and the United Steelworkers (USW). This determination by the ITC negated the implementation of anti-dumping and countervailing duties calculated by the Department of Commerce and will result in the continuation of widespread unfair trade practices in the tin mill products market.

Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer, stated, "It is now clear that the decision by United States Steel Corporation not to participate as a petitioner in this trade case -- or provide a substantive response to the ITC’s request for further information on the idling of tin lines in Gary and East Chicago, Indiana and the closure of UPI in California -- directly led to the ITC’s negative determination. Had U.S. Steel cooperated with the ITC, the Commission would not have been left without the information needed to discern the market forces behind U.S. Steel’s withdrawal from the tin mill products market in the United States.”

Mr. Goncalves continued, “U.S. Steel’s January 2022 announcement that it would shut down its UPI tin mill in Pittsburg, California left the West Coast completely exposed to imports, particularly from Asian countries like Japan and China. This decision played a major role in the surge of imported tin mill product that hit the U.S. in mid-2022 and decimated the domestic industry, harming workers and communities. In spite of U.S. Steel’s intransigence, I am grateful for the partnership of the USW that allowed this case to go forward. The report issued this week made clear that, unfortunately, the ITC discounted the filings and testimony of the USW that clearly articulated how its members at Cleveland-Cliffs and U.S. Steel had been materially injured by unfair trade.”

“USW members across the tin mill industry can compete with anyone on a level playing field,” said USW International President David McCall. “Unfortunately, the ITC’s decision continues to leave them and their families vulnerable to unfair trade, threatening their livelihoods and imperiling the communities in which they live and work.

“Dumped and illegally subsidized tin mill products have already cost far too many good, American jobs, and USW members understand as well as anyone that without relief, foreign producers will continue to undercut our market until we are wholly dependent on them.

“It’s clear that our nation urgently needs strategic reform of our broken trade system so that domestic workers and industries aren’t forced to fight on a case-by-case basis to ensure they have a future.”

About Cleveland-Cliffs Inc.

Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs is also the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.

About the United Steelworkers

The USW represents 850,000 workers employed in metals, mining, pulp and paper, rubber, chemicals, glass, auto supply and the energy-producing industries, along with a growing number of workers in health care, public sector, higher education, tech and service occupations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229790051/en/

MEDIA CONTACTS:

Patricia Persico

Senior Director, Corporate Communications

(216) 694-5316

Jess Kamm

USW Communications Director

412-562-2444

INVESTOR CONTACT:

James Kerr

Director, Investor Relations

(216) 694-7719

Source: Cleveland-Cliffs Inc.

FAQ

What was the outcome of the U.S. International Trade Commission's determination in the tin mill products trade case involving Cleveland-Cliffs and USW?

The ITC issued a unanimous negative injury determination, leading to the continuation of unfair trade practices.

Why did Lourenco Goncalves mention U.S. Steel in relation to the negative determination by the ITC?

Goncalves highlighted U.S. Steel's lack of cooperation with the ITC as a key factor in the negative outcome.

How did the closure of U.S. Steel's UPI tin mill in Pittsburg impact the tin mill products market?

The closure left the West Coast exposed to imports, leading to a surge in imported tin mill products that harmed the domestic industry and workers.

What did USW International President David McCall emphasize in response to the ITC's decision?

McCall highlighted the threat of unfair trade practices to USW members and their families, stressing the need for strategic reform of the trade system.

What is the current state of the tin mill industry according to the PR?

The industry faces challenges due to dumped and illegally subsidized tin mill products, impacting American jobs and necessitating reform of the trade system.

Who were the co-petitioners in the tin mill products trade case mentioned in the PR?

Cleveland-Cliffs and USW were the co-petitioners in the trade case.

What role did U.S. Steel play in the ITC's determination according to the PR?

U.S. Steel's lack of cooperation with the ITC was highlighted as a factor in the negative outcome.

What impact did the surge of imported tin mill products have on the U.S. market?

The surge harmed the domestic industry and workers, leaving them vulnerable to unfair trade practices.

Why did Lourenco Goncalves express gratitude towards the USW in the PR?

Goncalves appreciated the partnership of USW in allowing the case to proceed despite challenges.

What did the ITC's report discount according to the PR?

The report discounted the filings and testimony of the USW regarding the impact of unfair trade on Cleveland-Cliffs and U.S. Steel members.

What is the urgent need highlighted in the PR regarding the trade system?

The PR emphasizes the urgent need for strategic reform of the trade system to protect domestic workers and industries.

How did the closure of U.S. Steel's UPI tin mill impact the West Coast according to the PR?

The closure left the West Coast exposed to imports, particularly from Asian countries, leading to negative consequences for the domestic industry and workers.