Final Thoughts

U.S. Steel tonight announced their intention of focusing their company on three core assets: Gary Works, Mon Valley Works and Big River Steel. This comment was made at the same time they announced their intention to idle a large portion of their Great Lakes Works near Detroit. WARN notices have been sent to the 1,500+ workers at that plant. Folks, the steel industry is changing right before your eyes. Change that took decades is now taking months.

I have been asked many times if I believe in Steelmageddon. Do I believe in the idea that the steel mills will cannibalize themselves by bringing up more supply than the market can buy? I believe the mills are (finally) doing what they need to be doing. Bringing on the technology and offering new products. Combining with commodity suppliers and figuring out other ways to lower costs to be internationally competitive. Putting plants where they need to go, and fighting to keep out unfairly traded steel – at least until the new plants are up and running. No, I am not a believer in Steelmageddon. I am a believer that the industry is figuring out how to survive in a tough world, and at the same time figuring out what they need to offer North American manufacturing companies so they can purchase North American steel and still be world competitive.