According to news reports, AK Steel said Section 232 tariffs should extend to downstream products such as transformers that use electrical steels. In a conference call with analysts Tuesday, AK Steel CEO Roger Newport said the extension to products in the electrical transformer supply chain would “prevent circumvention and to protect our nation’s critical electrical infrastructure and national security.”
Newport said protections are necessary because the US has lost its manufacturing base over the years and AK Steel is now the sole producer of electrical steel in the US.
“We see material coming through Canada and Mexico, for example,” Newport said. “So it’s really critical that we have a comprehensive resolution... otherwise it will just be another avenue to circumvent our trade laws.”
AK Steel President and COO Kirk Reich said in the conference call that the company is working with the US Department of Commerce “and others” to ensure downstream products are protected, as some electrical steel consumers have threatened to “go abroad” if downstream products aren’t covered.
According to the company’s quarterly results, AK Steel shipped 221,500 short tons of electrical steel in the second quarter of 2018, up 5.2 percent from 210,500 tons in Q2 2017.