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NLMK sues US Steel over 232 exclusion denial

Posted on 29 January 2021

NLMK believes it has a strong case against US Steel for allegedly blocking its Section 232 exclusion requests with misrepresented claims, Kallanish learns from a company spokesperson. 

NLMK has filed suit against US Steel “...based on statements and representations from US Steel that it was willing and able to supply the products NLMK USA required.”

NLMK’s exclusion requests for slab were denied under Section 232, after US Steel said its was ready and willing to supply the slab domestically. 

“These representations were false,” the NLMK spokesperson says “US Steel knew it was neither able nor willing to provide slabs to meet the specifications or in the volume sought by NLMK USA. This dishonest representation was designed and intended to impede and interfere with NLMK’s ability to compete with US Steel by forcing NLMK USA to pay the tariffs from which it should have been excluded.”

The company is seeking $100 million in damages plus punitive damages against US Steel. 

US Steel wholly rejects NLMK’s claims. 

“Russian-owned NLMK is suing US Steel because we objected to NLMK’s requests that the US Department of Commerce exclude NLMK from paying the Section 232 national security tariffs on steel slab imports from Russia that NLMK imports to finish in the US,” a spokesperson says. “ US Steel does not provide the Department of Commerce false information.”

Specifically, US Steel contests NLMK’s assertion that it was not willing or able to provide slab feedstock.

“We objected to NLMK’s exclusion requests based on our ability to mine, melt, and pour steel slabs in the USA - which we currently do and could do much more with idled blast furnaces in Michigan and Illinois. Other domestic steelmakers made similar objections.  The Department of Commerce - not US Steel - rightfully denied NLMK’s repeated requests. We are committed to American manufacturing, American jobs and American steel.”

Source : Kallanish