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Trump Trade War - NLMK USA Layoffs 70 Workers at Pennsylvania

Steel News - Published on Thu, 11 Jul 2019

Image Source: First Coast News
AMM reported that a NLMK USA executive, following the layoff of at least 80 employees at its Pennsylvania facility last week, said that the United States' Section 232 tariffs have benefited certain steel producers but mostly negatively impacted others due to disruption to the global supply chain ecosystem. NLMK USA president and chief executive officer Bob Miller told Fastmarkets in an interview “The Commerce Department’s denial of the company's requests to exclude its imports of semi-finished steel slab from the provisions of the Section 232 tariffs has increased its raw material costs. This, in turn, has led to decreased order books at NLMK USA's mills since they have to be really selective about which orders they take from customers. We have no choice but to start laying off employees because we are not working as much as we were before. And I believe that’s a direct result of the Section 232 tariffs.”

He added “Additionally, the Section 232 tariffs have had very little benefit to the domestic steel industry other than a short-term run-up in steel prices in 2018. The fact that today’s price is lower than it was before the tariffs took effect tells you that the tariffs are having only a negative impact on the domestic market.”

NLMK USA’s Pennsylvania plant operates a conversion mill, turning slabs into hot-rolled coil and cold-rolled coil and relies heavily on imported slab from Russia. It had filed an exclusion requests in March 2018, which was turned down. NLMK USA is currently buying some slab from Brazil

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Posted By : Ratan Singh on Thu, 11 Jul 2019
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