AK Steel Holding Corp. plans to idle a Kentucky blast furnace in December in response to sharply lower steel prices amid a supply glut and higher imports.
The Ohio steelmaker didn’t specify how many of the 940 workers at its Ashland Works facility would be affected, but said it doesn’t intend to idle the hot-dip galvanizing line that largely services automotive customers.
“We are taking this necessary step due to the onslaught of what we believe are unfairly traded imports of carbon steel that have been flooding our shores,” Chief ExecutiveJames L. Wainscott said in a news release, adding, “These imports have substantially reduced order intake rates, production rates, shipment volumes and selling prices.”
The company said the facility could be idled for more than six months.
In June, six steelmakers including AK Steel filed a trade complaint seeking tariffs foralleged unfair pricing of imported steel from China, India, Italy, South Korea and Taiwan. The petitioners are frustrated because prices have been sluggish despite strong demand. That has forced the companies to lay off thousands of workers and idle plants around the country.
They blame imports, particularly from China. Slowing demand in that country has led its steelmakers to export excess capacity, flooding global markets.
AK Steel is required to give 60-day notice of moves affecting large numbers of workers under the Worker Adjustment and Retraining Notification Act.
Shares of AK Steel were down 2.1% in afternoon trading. They have lost about half of their value this year.