The joint press conference hosted by the American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA) featured several top executives from the US steel industry to discuss key issues affecting the market, however the question and answer period focused heavily on current trade actions, including the Section 232 investigation that could have substantial effects on the US steel import market.
Attending executives included Peter Campo, President of Gerdau Long Steel North America; John Ferriola, President and CEO of Nucor; Roger Newport, CEO of AK Steel; and Tracy Porter, Chairman and Executive VP of CMC Operations. SMA President Philip Bell and AISI President Thomas J. Gibson also participated.
Executives promoted the Section 232 investigation as a “good tool” to fairly evaluate the impact of steel imports, although reporters in-person and calling into the conference had questions about the ramifications of the investigation. Katie Memmel, Content Manager of SteelOrbis Americas, asked whether US steel buyers should be concerned about US mill price increases in the event the investigation ends with high enough tariffs to push steel imports from the market. Ferriola commented that while he could not discuss prices, the result of the elimination of “dumped steel imports” will be “fair market prices.”
In a follow up question, Memmel asked whether, in the same scenario, US mills would increase capacity utilization to accommodate the drop in import supply. Ferriola said “of course we would” in order to meet the demands of the market.
Other topics included Chinese currency manipulation, and whether industry executives expect the president to follow through on his promise to resolve the situation. The subject of China’s steel overcapacity also came up, with Philip Bell saying an “all of the above” strategy—including trade cases, trade enforcement, and diplomacy—is necessary to continue placing pressure on China and creating a “fair playing field.”
The renegotiation of NAFTA was also discussed, with the executive panel agreeing that it is an “excellent opportunity to improve, update and possibly expand business that will positively affect the US." However, Peter Campo of Gerdau added that “the borders of Mexico and Canada are the least of our concerns in regards steel at the moment when considering other regions with overcapacity and dumping.”