NEW YORK AK
Steel Corp. said the commodity stainless market is "brutal,"
while overcapacity in the global electrical steel market is
driving more imports into the United States.
With AK Steel
reporting increasing shipments to the automotive end-market in
the second quarter of 2013 (
amm.com, July 23), the company is keeping the
majority of its focus on servicing demand for 400-series
"In the 300-series
commodity stainless market, conditions remain brutal. A market
already characterized by overcapacity was not helped by the
arrival of Outokumpu and new capacity in Alabama. Declining
nickel markets havent helped either," AK chairman,
president and chief executive officer James L. Wainscott said
during an earnings conference call.
The West Chester,
Ohio-based companys electrical steel division enjoyed a
10-percent increase in sales compared with the first three
months of this year, with the North American market exhibiting
more strength than other parts of the world.
"The Nafta (North
American Free Trade Agreement) market is OK if not pretty good,
relatively speaking, vs. international, which is not good at
all," Wainscott said. "Theres too much steel
internationally chasing too few orders. Asian producers, in
particular, seem to have contributed to the overcapacity
problem. That, in turn, caused us to reduce exports. And that
has caused foreigners to look to America, so were seeing
increases in imports into our country."