United States Steel Sale

[Guest]

Another component of the slow demise of the steel industry beginning in the late 1950s that gets little attention is the fact that the steel mill infrastructure in many of the nations involved in World War II was mostly destroyed or at least heavily damaged. When these same nations were rebuilt they had modernized mills whereas the US, which had suffered no damage to its steel industry infrastructure, did not have the same need to rebuild and therefore few new mills were established. At the same time emerging nations also began to build new mills and with lower labor costs were able to completely effective in competing in US markets. The steel strikes of the 1950s also opened the door to cheaper imported alternatives. The reasons as to why the domestic steel industry is in the state it is today is mult faceted and could fill volumes.

[Guest]

The Japanese automakers have proven to good partners. Their plants are modern and employee thousands. They also do R&D here in a big way.

Considering Nippon Steel has much deeper pockets than US Steel could mean more investments in the legacy plants than USS would have ever done. In my little corner of the world, I hope a richer company will remediate the Lorain Steel plant which has been shut down for years. It's on prime Black River property that looks pretty bad with the eyesore of an abandoned steel mill on it.

[clarkjol]

CP KC use lots of new rails made in japan by nippon steel. CN uses mostly new rails made in poland. algoma steel use to make rails, then sydney steel in sydnev, n.s. i dont believe rails are made in canada any longer. are new rails made in usa? union pacific has a ship {foriegn flag} that imports steel for their use. sometimes it unloads in squimish, bc for i assume CN.

Steel Dynamics, Columbia City, IN facility produces rail.

[Guest Jon Paul]

My understanding was the USW had a say so in how this all would go down and were pro Cliffs and vocal about it.

[Guest]

Everything today is “ political” whether an election year or not. I’m sure those involved calculated this in their risk assessment before the purchase agreement. My nephew is high up the ladder at USS in the Pittsburg hdq. They anticipated some push back but ultimately it’s about saving jobs at least short term.in the unlikelhood it does fail they will shutter the doors as their future order book is dismal.

There will be calls for more import bans, guaranteed jobs etc and bans to foreign ownership but in the end Nippon will win out.

[Guest]

It undoubtedly will effect the lakes, but I don't quite see the rationale for doom and gloom other than the usual protectionist arguments. I'm sure the same noise was made when Arcelor bought up the mills at Burns Harbor and Indiana Harbor as well, and the sky didn't fall then either.

The various sales of the former Inland Steel and Bethlehem Steel occurred during a round of steel demand collapse in 2001-2003, and Wilbur Ross purchased those steel mills under the International Steel Group (ISG). He subsequently sold those mills to Arcelor-Mittal a couple of years later as steel demand picked up, peaked, only to collapse again in October 2008. That was at the time that Severstal owned the former Rouge Steel. So foreign investors/buyers were seen as saviours.

I think one reason why we are seeing some push-back against Nippon Steel's purchase of US Steel is that in the 1980s, Japan was seen as the main country dumping steel in the US - and hence why so many mills were being closed. The story was much more complex then that, of course, but people needed someone to blame.

The reaction by some to the sale of US Steel to Nippon Steel may be tied to those rememberances from the early- to mid-1980s.

BTW, US Steel owns Big River Steel, which operates two mini-mills. Are those mills included in the sale to Nippon Steel?

[Guest]

Steel dynamics rolls RR rails. I believe another mill still does also but can’t remember. Used to haul them out of USS Gary to Mich auto plants.I think they stopped producing them. USS employees should be glad Nippon bought the co. All other bidders, except Cliffs would have raided the remaining assets, shut down the blast furnace mills and invested in the Arkansas mini mill plus probably built more EAFs. They didn’t pay such a premium stock price to do that. If the protectionist blowhards would shut up and work with Nippon they may actually gain some more orders.USS will now be part of a major global steel producer. Nippon wants to gain market share.what better way than buy existing mills? I believe it was Nishin steel that owned part of national steel in the 80s.they invested in Great Lakes mill n saved it back then. The steel workers union caused their own demise when they went on strike for months back in late 50s early 60s. With the new seaway it opened a stream of imported steel that the auto cos bought to remain in production. Funny how they never see their part in the slow demise of the US steel industry. The OLD industry I should say.Nucor steel dynamics and other EAF producers are doing very well n produce more tonnage than CC n USS combined. I live near Great Lakes works.just glad the finishing plant will remain open a bit longer.

[Guest]

He can say all he wants about blocking the sale. Truth is USS is a publicly traded co.and its shareholders are free to sell to whom ever they want to. Nippon has a US presence for 40 some years in America. They have I think 2 unionized plants in Ohio/ west va. This will pass any anti trust protests with flying colors unlike a Cliffs takeover would have. Nippon has deep pockets.

Yes, the domestic auto manufacturer's were against Cliffs buying US Steel due to concentration of the integrated mills with one company (Cliffs).

But with 2024 being an election year, I wouldn't be so sure that this will pass "with flying colors" - this sale could become political.

[Geest]

It undoubtedly will effect the lakes, but I don't quite see the rationale for doom and gloom other than the usual protectionist arguments. I'm sure the same noise was made when Arcelor bought up the mills at Burns Harbor and Indiana Harbor as well, and the sky didn't fall then either.

[guest]

CP KC use lots of new rails made in japan by nippon steel. CN uses mostly new rails made in poland. algoma steel use to make rails, then sydney steel in sydnev, n.s. i dont believe rails are made in canada any longer. are new rails made in usa? union pacific has a ship {foriegn flag} that imports steel for their use. sometimes it unloads in squimish, bc for i assume CN.

[Guest]

He can say all he wants about blocking the sale. Truth is USS is a publicly traded co.and its shareholders are free to sell to whom ever they want to. Nippon has a US presence for 40 some years in America. They have I think 2 unionized plants in Ohio/ west va. This will pass any anti trust protests with flying colors unlike a Cliffs takeover would have. Nippon has deep pockets.

[Guest]

And the sale to Nippon is generating anger at US Steel management by the USW union and Senator John Fetterman is planning to block the sale. Will be fun times for US Steel management.

[guest]

Just saw the notice of Nippon Steel agreeing to purchase United States Steel for $14.9 billion. Hard to believe that a corporation as large as it was at once was has shrunken to the point of only being worth that amount in today's dollars. I would expect even more constriction in the current assets owned by USS in the near future. I would assume that this will likely have some effect on any mining ventures (if any) the corporation still retains.

The actual announcement indicated that Nippon Steel of Japan paid $55 per share for the company and assume $14.9 billion of debt. I'm sure this deal is going to impact Great Lakes operations.

[Guest]

Just saw the notice of Nippon Steel agreeing to purchase United States Steel for $14.9 billion. Hard to believe that a corporation as large as it was at once was has shrunken to the point of only being worth that amount in today's dollars. I would expect even more constriction in the current assets owned by USS in the near future. I would assume that this will likely have some effect on any mining ventures (if any) the corporation still retains.