Final Thoughts

I mentioned this in my pricing article earlier in this newsletter, but I think it bears repeating. When I was with Winner Steel (now called NLMK Sharon Coatings) we brought up two new coating lines. As each line came onstream it was imperative to get orders, so the line would run. One way to get orders was to price the product “competitively” (below the competition, and in some cases well below the competition). Over time, as the quality and service became known, the mill was able to increase pricing (or reduce the spread between themselves and the competition).

The electric arc furnace (EAF) at JSW Ohio (former Wheeling Pittsburgh furnace), after sitting idle for the past 10 years, is back online. We understand the mill is transitioning into products other than CS/B (C1006) and working through the various grades. Right now, it appears the mill is running a mix of foreign slabs and new production coming off their EAF. The furnace is still newly operational, so we anticipate a learning curve and ramping-up phase. Part of the ramp-up phase is taking orders in those areas where they are available.