By converting them into hot band, AK was able to pick up a significant profit and way outperform the rest of the integrated companies. While other U.S. companies were complaining about imports, AK was buying imports. AK also bought hot band initially while ramping up its Rockport Works finishing mill in Indiana. They'd rather use something less expensive. Quality didn't have to be as good.
Steelmakers also use the steel to prepare for major outages, such as blast-furnace rel ines.
U.S. companies had bought semifinished steel from other domestic producers until many of these mills began buying slabs as well. This has forced U.S. steelmakers to look overseas. The situation comes at a time when the industry is trying to slow what it says is a massive surge of imports being sold at unfairly low prices. Slab purchases are very important to U.S. mills because they offer flexibility during downturns, Bradford says. Rouge and Oregon Steel Rouge Steel became a major slab purchaser this year.