USS lockout could put pressure on scrap
Apr 29, 2013 | 03:34 PM
| Lisa Gordon
PITTSBURGH The lockout of unionized workers at U.S. Steel Corp.s Lake Erie Works will put further pressure on the Ontario ferrous scrap market and could have a trickle-down effect on other major scrap regions, according to market participants.
The Pittsburgh-based steelmaker initiated the lockout of union workers at 9 a.m. April 28 after labor negotiations between the two sides failed. Although it is still too early to estimate how long the lockout could last or to what extent the steel mill will be able to continue to operate, scrap market participants predicted the action could leave some material usually sold into the mill looking for new homes.
The company did not respond to requests for comment about its planned scrap purchase program during the lockout, and it has not announced any plans to stop producing. In fact, the union claimed in early April that the company was teaching nonunion workers how to operate the Nanticoke, Ontario-based complexs hot-strip mill, indicating that it planned to continue to produce metal to some degree (amm.com, April 8). ....
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