NEW YORK Flat-rolled
steel producer ArcelorMittal Dofasco Inc. says it has yet to be
affected by a union lockout at nearby U.S. Steel Corp.s
Lake Erie Works.
"Obviously, the Canadian market
moves very much in tandem with the U.S. market ... (but) I
think that its very early days on that front," Louis
Schorsch, chief executive officer of ArcelorMittal USA
Inc.s Flat Carbon Americas division, said during a
company earnings call May 10. "We havent seen a major
impact of stoppage at Lake Erie since its in its very
early days. It may have some major impact (in the future) on
Last month, U.S. Steel locked
out some 1,000 United Steelworkers union members at its
Nanticoke, Ontario-based operations after both sides failed to
reach a new labor agreement (
amm.com, April 29). Some speculated that nearby
producersincluding ArcelorMittal Dofasco, located about
40 miles away in Hamiltoncould benefit if production were
A spokesman for U.S. Steel did
not respond to a request for comment. It was unclear whether
hot-mill production was affected at the Lake Erie plant.
Schorsch added that the "slight
wrinkle" behind the lack of pickup in activity as a result of
the lockout was due to what he called "extremely high levels"
of up to four months inventory on hand in the region.
"That market is relatively soft.
I think U.S. Steel has a lot of capacity in that region," he
added. "But as for any impact, we havent seen it
Steel buyers told AMM
that the Pittsburgh-based steelmaker stocked up on inventory
before giving the union a 72-hour lockout notice April 25
amm.com, May 2).