In nucors 2017 annual report ferriola again reported

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In Nucor’s 2017 Annual Report, Ferriola again reported to shareholders on the impacts that global excess capacity and unfair trade practices were hav- ing on the company: Although Nucor’s earnings increased significantly in 2017, they continue to be impacted significantly by extremely high levels of steel imports. Our industry remains greatly constrained by the impact of global overcapacity. Weak economic conditions in Europe, slow growth in China and a strong U.S. dollar relative to other foreign currencies continue to make the U.S. markets a prime target for foreign steel imports. While the steel industry has historically been characterized by periods of overcapacity and intense competition for sales among producers, we are currently experiencing an era of global overcapacity that is unprecedented. Despite ongoing domestic and global steel industry con- solidation, the extraordinary increase in China’s steel production in the last decade, together with the excess capacity from other countries that have state-owned enterprises (“SOEs”) or export-focused steel industries, have exacerbated this overcapacity issue domestically as well as globally. . . .We believe Chinese producers, many of which are government-owned in whole or in part, continue to benefit from their government’s manipula- tion of foreign currency exchange rates and from the receipt of government subsidies, which allow them to sell steel into our markets at artificially low prices. Foreign imports of finished and semi-finished steel increased more than 15 percent in 2017 compared to 2016 . . . with imports of finished steel products alone capturing 27 percent of the U.S. market despite signifi- cant unused cost-competitive domestic capacity. The surge comes from numerous countries and cuts across many product lines. Our products that experience the greatest amount of imports include semi-finished steel, reinforcing bar, plate and hot-rolled, cold-rolled, and galvanized sheet steel. Countries that contribute signifi- cantly to the import total include South Korea, Turkey, Japan, and China. China is not only selling steel at artificially low prices into our domestic market but also across the globe. When it does so, steel products that would steel products, plus the markets for scrap steel and scrap substitutes. Nucor executives considered all the market segments and product categories in which it competed to be intensely competitive, many of which were populated with both domestic and foreign rivals. For the most part, competition for steel mill products and finished steel products was centered on price and the ability to meet customer delivery requirements. And, due to global overcapacity, many of the world’s steelmakers were actively seeking new business in whatever geographic markets they could find willing buyers.

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