ISRI, SMA decry scrap barriers.
"The lack of a level playing field for steel scrap is harming U.S. steel producing and consuming industries," the two associations say in a joint statement.
"Foreign steel-producing countries are restraining their scrap exports in order to subsidize local steel production. At the same time, these export restraints distort the world market for scrap," they claim.
The SMA and ISRI combined forces to lobby Washington to act against trade barriers overseas that they blame for more than doubling the price of scrap in a year.
"The combination of export duties or tariffs on exports amounts to trade distorting practices," says Thomas Danjczek, president of the SMA, which represents North American mini-mills that produce steel mostly from scrap.
"We are opposed to export controls. Our members benefit from free and fair trade and when you have tariffs, it interferes with the marketplace," adds Robin Wiener, president of ISRI.
With worldwide demand for steel soaring, especially from industrial growth in China, the steel price has soared in the past year. However, so too has the price of scrap, partly as a result of overseas export tariffs, the SMA and ISRI allege.
Since October 2003, the composite scrap price has more than doubled from $120 per ton to just under $300, says Danjczek.
"If the scrap stays overseas, that's the equivalent of subsidizing their steel manufacturing--they are getting scrap for less than the market price," he says.
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|Title Annotation:||Scrap Industry News; Institute of Scrap Recycling Industries; Steel Manufacturers Association; trade measures against Russia and Ukraine on scrap exports|
|Article Type:||Brief Article|
|Date:||Jan 1, 2005|
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