In two press releases a day apart, the American Iron and Steel Institute (AISI) commented on President Obama's speech on climate change and on the use of Chinese steel plate for a replacement bridge project in New York. On Tuesday, AISI said that the President's speech on climate change "would place the steel industry at a substantial disadvantage to its foreign competitors and raise electricity costs."
"The regulations proposed by the President today will invariably raise electricity costs and decrease service quality for major industrial customers, like the steel industry," said Thomas J. Gibson, president and CEO of the AISI. "The North American steel industry is heavily dependent on affordable and reliable energy, which is typically 20 percent or more of the cost of making steel. We are the most energy efficient steel industry in the world, having voluntarily reduced our energy intensity by 27 percent since 1990. However, we compete globally against countries, like China, where the industry is often state-owned, controlled and subsidized, including for electricity costs. Policies, like those proposed by the President today, raise energy costs on domestic companies and threaten our ability to remain competitive in this international manufacturing environment."
On Wednesday, the AISI said that it has asked the New York Metropolitan Transit Authority (MTA) to reconsider their decision to allow an expected 15,000 tons of steel plate made in China to be used in the upper deck replacement project for the Verrazano Narrows Bridge.
In a letter to the MTA, Gibson said: "At a time when our nation remains in a recovery from high unemployment and economic recession, we cannot afford to ship American manufacturing jobs overseas. Sourcing 15,000 tons of steel from China for repairs on the Verrazano-Narrows Bridge is particularly offensive as the vast majority of Chinese steel companies are government-owned and controlled, and heavily subsidized. In addition, the Chinese government deliberately engages in unfair trading practices like currency manipulation to give Chinese exports an unfair competitive advantage. We urge you to reconsider the decision."