It’s likely that the US Commerce Department will soon issue its findings from the Section 232 steel import investigation. Whenever the report is shared with President Donald Trump, it will be interesting to see how imports from Russia — the focus of another investigation you may have heard a thing or two about — are treated. Consider: Pig iron is a raw material to make steel. In its solid form, it can be re-melted in electric arc furnaces, much like steel scrap. It can also be charged into blast furnaces and basic oxygen furnaces, which constitute the other steelmaking process route in the US known as integrated steelmaking. About 65% of all steel in the US is made in electric furnaces — sometimes referred to as the mini-mill approach, and about 35% is left to big integrated producers. Hardly any merchant pig iron is now made by domestic steel producers. The pig iron that can be made here is generally all consumed by American steelmakers. Effectively they have none to sell to others. So given mini-mill electric furnace needs in particular, there is US demand for pig iron from offshore. And guess where most it comes from? Russia. In fact,
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Source: CTRM Center