Steel imports hurt AK Steel sales again

High levels of unfairly traded steel imports in the domestic market were again to blame by AK Steel for its April through June quarterly financial loss.

AK Steel reported Tuesday a net loss of $64 million for the second quarter of the year, compared to a net loss of $17.1 million a year ago. The Butler County steelmaker also had a net loss of $306.3 million in the prior January through March quarter of 2015 that was partly attributed to foreign steel.

“Continued strength in the automotive market contributed to an overall increase in automotive market and total shipments quarter-over-quarter for the company,” said James Wainscott, chairman, president and chief executive officer of AK Steel, in a written statement. “Unfortunately, however, continued high levels of what we believe are unfairly traded imports significantly impacted selling prices in the carbon steel spot market, which negatively impacted the company’s results.”

Steel shipments rose to 1,811,700 tons in the most recent quarter from 1,750,500 tons sold in the beginning of the year, but the average selling price dropped 7 percent during that time, according to AK Steel.

Shortly after releasing financial results, AK Steel also announced Tuesday plans to join other steel producers in filing antidumping and counter-vailing duty petitions against eight countries related to cold-rolled steel. Complaints were filed with the United States Department of Commerce and U.S. International Trade Commission. Cold-rolled steel — used to make appliances, automotive products, containers and construction materials — comprised approximately 20 percent of AK Steel’s shipments in 2014, according to the company.

“The negative impact to our company and to other U.S. producers has been significant in terms of pricing, production, sales and earnings,” Wainscott said.

In June, AK Steel also joined other steel companies to file complaints related to corrosion-resistant steel; and last year, AK Steel won a trade case affecting non-oriented electrical steel when the International Trade Commission determined domestic industry production was materially injured by dumped and subsidized imports.

The trade action lifted AK Steel’s share price by more than 18 percent as of 1:30 p.m. Tuesday to nearly $3 a share. That’s after the stock price sank to a new year-long low Monday of $2.38 per share before closing at $2.52.

AK Steel Holding Corp. is headquartered in West Chester Twp. Between operations in West Chester and the Middletown Works steel plant, AK Steel employs approximately 2,400 full-time workers in Butler County, making it the county’s third-largest employer. AK Steel facilities in Ohio, Kentucky, Indiana, Pennsylvania, Michigan and Minnesota employ more than 8,000 altogether and produce flat-rolled carbon, electrical and stainless steels used by the automotive, appliance, construction and manufacturing markets.

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