California Steel and Tube v. Kaiser Steel Corporation

California Steel and Tube brought this antitrust action alleging that Kaiser Steel Corporation’s acquisition and operation of a steel tubing division violated Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1 & 2, and Sections 3 and 7 of the Clayton Act, 15 U.S.C. §§ 14 & 18. The district court, 469 F.Supp. 265 , granted summary judgment for Kaiser Steel Corporation, and California Steel and Tube appeals. Because there are numerous issues of fact which preclude the entry of a summary judgment, we reverse.

California Steel and Tube (CalSteel) is a manufacturer of mechanical steel tubing and other steel products. In January 1970, it shared the tubing market in the Western United States with five other producers. One, MSL Tubing (MSL), held a 40% share of the market; the remaining five each held 15% or less of the market. Kaiser Steel Corporation (Kaiser) produces and sells steel nationwide. In March 1970, it acquired the assets of MSL; it then entered the steel tubing market, operating the acquired company as Kaiser Steel Tubing.

Steel tubing is manufactured from sheet steel products. These include prime sheets, rolled and finished to the order of the customers who manufacture…