Scrap export limits?

Is high-priced ferrous scrap limiting the ability of the American manufacturing sector to get back on its feet? That is the contention of several trade groups, who reportedly are considering asking the government to intervene to keep ferrous scrap affordable and at hand.

As reported in American Metal Market, the Cleveland-based Forging industry Association (FIA), floated the idea of banding together with other trade groups, including the National Association of Manufacturers and the major steel industry trade groups, to call for government restrictions or tariffs on the exporting of ferrous scrap.

According to AMM, manufacturers were successful in enacting similar restrictions in the early 1970s, though at other times they have been turned back in their efforts to impede the flow of scrap.

Regarding any current efforts, the Institute of Scrap Recycling Industries Inc. (ISRI) has made its position clear. In a January news release, the organization said it would "vigorously and aggressively oppose any efforts to restrict free trade in the U.S. scrap metal industry."

The ISRI release disputed the notion of a scrap shortage. "It is estimated that ferrous scrap exports will make up about 15.1 percent of U.S. ferrous scrap consumed in 2003 (approximately 11 million short tons exported vs. over 62 million short tons consumed domestically), a number that is slightly less than the export percentage for 1995, when 10.3 million short tons were exported and over 56.9 million short tons were consumed in the U.S."