June 12, 2008
New “American Scrap Coalition”
Will Address Global Trade Barriers
Coalition Notes Record Level of U.S. Exports
and Prices, Calls on USTR and Congress for Immediate Action
WASHINGTON, DC—As steel scrap prices reach record high
levels of more than $600 per ton and with U.S. scrap exports
steadily rising, a group of steel scrap using industries has
formed the American Scrap Coalition and today urged immediate
governmental action to remove global barriers to trade.
steel scrap processing and consuming industries are facing
a steel scrap export crisis. Steel scrap exports
from the United States
have tripled since 2000, rising from 6.3 million tons in 2000 to more
than 18 million tons in 2007. U.S. scrap exports have surged to a variety
of countries, including Turkey, Taiwan, Malaysia, Thailand, India,
Egypt, Greece, Hong Kong, Pakistan, Indonesia, Japan, Italy,
and Colombia. China and Korea also remain among the top five destinations
of scrap exports.
Meanwhile, U.S. scrap imports in 2007 decreased 23 percent from
2006, from 4.8 million tons to 3.7 million tons, as numerous
countries have erected trade barriers to restrict steel scrap
trade and maintain their scrap for domestic use.
“Steel scrap trade does not occur on a level playing
field,” said Alan Price, president of the new American
Scrap Coalition and a partner at Wiley Rein LLP in Washington,
which serves as counsel to the Coalition. “More than 20
countries, including Brazil, Russia, India and China, have enacted
a series of barriers to scrap trade in order to protect their
domestic steel industries.” These barriers on exports are
distorting trade in steel scrap, Price said, thereby raising
scrap prices on the U.S. market. U.S. steel scrap prices have
surged to unprecedented levels, from less than $100 per ton in
2002 to more than $600 per ton today. This has led to serious
and growing concerns about domestic scrap availability.
In response, industry associations representing more than 1500
steel scrap consuming companies have announced the formation
of the American Scrap Coalition (www.scrapcoalition.com), and
are calling on Congress, the U.S. Trade Representative and the
Commerce Department to immediately address scrap trade barriers.
“Many of our major trading partners maintain restrictions
on their scrap exports, through quotas and other export restrictions,” said
Thomas Danjczek, president of the Steel Manufacturers Association. “Our
government should work immediately to remove these barriers,
using any and all means available.”
The American Scrap Coalition has identified several priority
- Identify and remove barriers to trade in steel scrap, which
hinder U.S. companies and global competition;
- The U.S. carbon steel industry recycled approximately 75
million tons of ferrous scrap last year, with approximately
80 percent of that scrap consumed in Electric Arc Furnaces.
Recycling scrap metal is the most efficient way to make steel,
and therefore results in the lowest level of greenhouse gas
emissions. The American Scrap Coalition will support and promote
policies to encourage the recycling, recovery and use of recycled
scrap material in production of new steel products.
- Consider actions by Congress, the Commerce Department and
the Office of the U.S. Trade Representative to remove trade
Sharp price increases and the potential for scrap shortages
are having significant effects on important manufacturing sectors
of the U.S. economy. The rising cost and decreasing availability
of steel scrap impacts all manufacturers, buyers and consumers
of steel scrap. If actions are not taken to open markets abroad,
the United States needs to consider taking more aggressive actions.
Key U.S. industries, from foundries to steel producers to construction
to automotive manufacturing to appliances, face impacts from
sharply increased steel scrap exports and pricing levels. Companies
of all sizes, from national manufacturers to small family-owned
steel parts makers, are impacted. This crisis has the potential
to affect tens of thousands of jobs in manufacturing and consuming
The American Scrap Coalition, a Washington, D.C.-based nonprofit
corporation, is a successor to the Emergency Steel Scrap Coalition,
which formed in 2004 to address scrap export and price issues
and to advocate for controls on exports of domestic steel scrap.
Founding members of the American Scrap Coalition include the
Steel Manufacturers Association, the American Foundry Society,
and the National Precast Concrete Association. In all, more than
1500 companies are members of these associations.
Companies and industries wishing to join the American Scrap
Coalition can register at www.scrapcoalition.com, or contact
Alan Price or Tim Brightbill of Wiley Rein LLP, which serves
as counsel to the Coalition. The website contains additional
information on scrap trade barriers, import and export levels
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Updated 05/12/2011 .