In an interview with S&P Global Platts at the General Meeting of the World Steel Association this week in Mexico, Stickler called for a change in the way steel is bought and sold in the United States.
“The pricing structure in the US market is not only outdated, it is broken, and it will require more innovative thinkers who are ready to accept change. I'll tell you that Big River Steel has a proven track record of being at the forefront of thinking and changing agents when it comes to any, say, more traditional way of doing business. ”
The Steel Works is one of the leading North American businesses in its approach to price risk management and does not intend to stop halfway.
“We are in extensive discussion with one of the European auto manufacturers that operates a significant number of businesses in Mexico about some of the unique and far from completely traditional pricing mechanisms that we believe will benefit the manufacturer,” said Stickler. “But just as important, if not more important, it will benefit us by allowing us to lock in margins over the long term. We have not signed this agreement yet, but there are signs that we are moving in an extremely positive direction. ”
Big River's approach stands in stark contrast to the announcements of its new partner US Steel, which recently acquired 49% of Big River Steel. US Steel has announced the need to return to "traditional selling mechanisms like many years ago" and that it is going to abandon the mechanisms of regulated price contracts.
US Steel's call for a return to the past is at odds with Big River's approach. Still, Stickler said he is proud to partner with a company with such a rich history, founded 118 years ago by Andrew Carnegie.
“I was impressed by the way David Berritt, CEO of US Steel, and his team said they were ready to change. And they are going to find a business model that positions the company for the next 118 years, ”said Stickler.
