Trade group says imported steel hurst U.S. economy
The U.S. International Trade Commission (ITC) found imported steel has hurt domestic steel production, costing thousands of jobs and millions of dollars in revenue.
The commission was directed by President George W. Bush earlier this year to investigate the effects of imported steel on U.S. steel producers and announced its findings last week. According to a statement released by the ITC, it found that “increased imports of certain steel products have caused or are threatening to cause serious injury to U.S. steel producers.”
The commission found 17 of 33 steel product groups, affecting 75 percent of the U.S. production, have been damaged by cheaper imports. Jay Bowcutt, general manager of Nucor Steel’s Plymouth, Utah division, said imported steel has lowered prices. Nucor is the largest steel recycler in the United States with divisions in nine states across the country, including two plants in Utah. Bowcutt said the ITC’s findings cover about half of Nucor’s products.
“Imports have hurt us tremendously,” Bowcutt said.
Utah Rep. Chris Cannon, testifying before the ITC, said imports have increased by 31 percent over the past several years, flooding the U.S. market. Cannon said foreign companies have been dumping steel into the U.S. market at “artificially low prices.” The results include steel companies filing for bankruptcy and laying off employees.
According to a report from the United Steelworkers of America (USWA), 25 steel companies in the United States have filed for bankruptcy protection since 1997, including Utah-based Geneva Steel which recently emerged from bankruptcy proceedings.
Bowcutt said the steel industry is not looking for advantages over imports.
“All we’re looking for is a level playing field,” Bowcutt said.
USWA President Leo Gerard said, “Given a level playing field, American companies and American workers can compete with anyone in the world.”
According to a release from USWA, more than $60 billion has been invested into the steel industry to improve modernization and has caused a 150 percent increase in production. But claims persist that international producers are being subsidized by their governments allowing for lower prices or are closed to foreign competition.
“Low-priced steel is flowing into America at record levels, threatening American steel producers and steel workers,” Cannon said. “I believe that survival of the U.S. steel industry depends upon temporary relief. This relief is essential in securing the future of America’s economy.”
Geneva Steel, located in Cannon’s Utah district and owned by Cannon’s brother, has cut jobs in the past decade as demand for domestic steel has slowed. According to reports filed by Geneva, all but one of its products was found to be damaged by imported steel.
“Our industry, our members and our communities have been facing a crisis for the last three and a half years. The crisis has been caused by surges of imports at distressed prices, and this last surge has devastated our industry and our members during a period of strong economic growth,” Gerard said.
ITC will submit its recommendations to the U.S. president who will then have 75 days to decide what action will be taken.