Market Overview

Lex Central President Bill Douglass Issues Statement Regarding Steel Tariffs and Section 232

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Celebrating its 50th Anniversary in the steel industry, The
Lex Group today released the following statement by Lex Central
President Bill Douglass regarding the ongoing debate on steel tariffs
and Section 232.

Douglass stated:

"Tariffs are generally not a preferred solution so long as the
marketplace supports a fair and reasonable price that allows the
producer a fair profit. The long-term key to sustainability in the steel
market is fair trade, and domestic policies that promote manufacturing.

Since my family began running The Lex Group 27 years ago, we have seen
tariffs and quotas numerous times, China and other countries have dumped
steel into the United States, the steel industry economically collapsed
twice, and our manufacturing customers have been decimated as well. The
only difference is that the price of steel had very little to do with
it. Manufacturing has declined when steel prices were low, and it has
declined when prices were high.

The bottom line is that the steel and manufacturing industries need
world markets that are open to all American products. Right now, the
trade balance is unfair and if we don't take a stand against foreign
trade barriers, the price of steel will be irrelevant because there
won't be any American manufacturers left to buy it. While we don't
expect everything to be perfectly in balance, we much prefer hearing
customers talk about issues like overtime and hiring more people. It's
been a long time since we've been able to hear that perspective.

When balance returns, responsible pricing will return, and tariffs will
no longer be needed. In the meantime, the tariffs are the only vehicle
available to achieve the desired end result."

About The Lex Group

The Lex Group is the parent company of a group of subsidiaries that
distribute flat rolled steel and other related metal products to solve
the challenges that North American manufacturers and distributors face
every day. Its businesses offer full production and logistical support
with distribution facilities in the Midwest, South, and Western United
States. For more information, please visit: http://lexgroupsteel.com/.

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