U. S. Steel, USW and Wheeling-Nippon File Trade Cases on Imports of Corrosion-Resistant Steel

Rhea-AI Summary

U. S. Steel, United Steelworkers union (USW), and Wheeling-Nippon have filed antidumping and countervailing duty petitions on imports of corrosion-resistant steel (CORE) from 10 countries. The petitions were submitted to the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) on September 5, 2024. This action aims to address low-priced and subsidized CORE imports entering the U.S. market, potentially harming domestic producers.

Duane D. Holloway, Senior VP and General Counsel of U. S. Steel, emphasized the importance of these trade cases in restoring a level playing field and supporting investments in new facilities. The DOC is expected to initiate the cases, with the ITC holding a preliminary staff conference this month. Final orders from both agencies are anticipated in October 2025.

Positive

• U. S. Steel is taking proactive measures to protect domestic steel industry
• The trade case aims to support investments in new production facilities
• Collaboration between U. S. Steel, USW, and Wheeling-Nippon demonstrates industry unity

Negative

• Final orders from DOC and ITC not expected until October 2025, indicating a lengthy process
• Potential for retaliatory measures from affected countries
• Possible increase in steel prices for U.S. consumers if import duties are imposed

Financial Analyst

This trade case filing by U. S. Steel, USW and Wheeling-Nippon is a significant development in the steel industry. It targets imports from 10 countries, potentially reshaping the competitive landscape for corrosion-resistant steel (CORE) in the U.S. market. The move aims to protect domestic producers from allegedly unfair foreign competition, which could lead to improved pricing power and market share for U.S. manufacturers if successful.

Investors should note that the process is lengthy, with final orders not expected until October 2025. This timeline suggests any financial benefits would be medium to long-term. The case's outcome could significantly impact U. S. Steel's profitability, particularly considering their investments in new facilities like the Big River Steel expansion. However, the uncertainty of the ruling and potential retaliatory measures from affected countries pose risks to consider.

Legal Expert

This antidumping and countervailing duty petition is a complex legal maneuver with far-reaching implications. The involvement of both the Department of Commerce and the International Trade Commission underscores the dual nature of the investigation, examining both pricing practices and potential government subsidies.

The petitioners must demonstrate that imports are sold at less than fair value and causing material injury to the domestic industry. The inclusion of 10 countries in the petition is notable, suggesting a broad-based challenge to international trade practices. If successful, this could result in significant tariffs on imported CORE, potentially altering global steel trade flows. However, the complexity of the case and the number of countries involved may lead to prolonged legal battles and possible appeals, extending beyond the expected October 2025 timeline.

Market Research Analyst

This trade case could significantly reshape the CORE market in the U.S. Currently, imports account for a substantial share of the domestic CORE consumption. If the petition is successful, we could see a shift in market dynamics, with domestic producers potentially gaining market share and pricing power.

However, it's important to consider potential downstream effects. Industries that rely heavily on CORE, such as automotive and construction, might face increased input costs if import tariffs are imposed. This could lead to price inflation in consumer goods or margin pressure for these industries. Additionally, the global nature of steel supply chains means that any disruption could have ripple effects across multiple markets. Investors should monitor not only the direct impact on steel producers but also the broader implications for steel-consuming industries and potential retaliatory measures from affected countries.

PITTSBURGH--(BUSINESS WIRE)-- On September 5, 2024, U. S. Steel, along with the United Steelworkers union (“USW”) and Wheeling-Nippon, has filed antidumping and countervailing duty petitions with the United States Department of Commerce (“DOC”) and the United States International Trade Commission (“ITC”), on imports of corrosion-resistant steel (“CORE”) from Australia, Brazil, Canada¹, Mexico, Netherlands, South Africa, Taiwan, Turkey, United Arab Emirates, and Vietnam.

Duane D. Holloway, Senior Vice President, General Counsel and Chief Ethics & Compliance Officer of U. S. Steel, commented, “As we have for decades, U. S. Steel continues to lead the domestic industry in the fight against unfair trade on behalf of our workers, families, communities, and customers we serve. These new trade cases—the largest filed by U. S. Steel in nearly a decade—will address low-priced and subsidized CORE imports that continue to pour into the U.S. market. These cases aim to restore a level playing field and support our investments in Big River Steel’s new dual coating line and second mini-mill in Arkansas, as well as U. S. Steel’s CORE facilities across the country.”

Holloway added, “We also applaud Wheeling-Nippon’s decision to be a petitioner in this trade case. Wheeling-Nippon is rising to the occasion, standing up and fighting for its hardworking steelworkers in West Virginia, alongside U. S. Steel and the USW.”

DOC is expected to initiate these new cases and the ITC is expected to hold a public preliminary staff conference this month. The DOC and ITC final orders are not expected until October 2025. The petitions can be accessed online at https://ids.usitc.gov/case/8223/investigation/8631.

About U. S. Steel

Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the Company’s customer-centric Best for All^® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3^® advanced high-strength steel. The Company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.

¹ U. S. Steel, the USW, and Wheeling-Nippon take no position on Canada.

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Source: United States Steel Corporation

FAQ

What trade petitions did U. S. Steel (X) file on September 5, 2024?

U. S. Steel (X), along with USW and Wheeling-Nippon, filed antidumping and countervailing duty petitions on imports of corrosion-resistant steel from 10 countries with the U.S. Department of Commerce and the U.S. International Trade Commission.

Which countries are targeted in U. S. Steel's (X) 2024 trade petitions for corrosion-resistant steel?

The trade petitions target corrosion-resistant steel imports from Australia, Brazil, Canada, Mexico, Netherlands, South Africa, Taiwan, Turkey, United Arab Emirates, and Vietnam.

When are the final orders expected for U. S. Steel's (X) 2024 trade petitions on corrosion-resistant steel imports?

The final orders from the U.S. Department of Commerce and the U.S. International Trade Commission are expected in October 2025.

What investments is U. S. Steel (X) supporting through these 2024 trade petitions?

The trade petitions aim to support U. S. Steel's investments in Big River Steel's new dual coating line and second mini-mill in Arkansas, as well as U. S. Steel's corrosion-resistant steel facilities across the country.