Tariffs on steel scrap besiege US steel producers

Tariffs on steel scrap besiege US steel producers

US steel producers and scrap metal companies complain about trade measures that Russia and Ukraine are imposing taxes and tariffs on scrap exports. This raw material accounts for two-thirds of US steel market requirement for production. The Steel Manufacturers Association (SMA) and the Institute of Scrap Recycling Industries (ISRI) pointed out that the inadequate steel scrap damages US steel producing and consuming industries. SMA and ISRI also reported that foreign steel-producing countries are restricting their scrap exports in order to subsidize local steel production. The SMA and ISRI demand Washington to interfere against trade barriers overseas, which are doubling the price of scrap in a year. Scrap metal, which accounted for 64% of the US steel output, is used in arc furnaces for manufacturing purposes. Although it has lower standard than steel manufactured from iron ore, it requires around one-fourth of the energy and is more environmentally-conscious to produce. Steel prices have increased in the last year due to global demand, especially from China. SMA and ISRI allege that scrap prices also increased as a result of overseas tariffs. The composite scrap price has more than doubled from $120/ton to just under $300/ton since October 2003. The US consumes 70 million tons of scrap annually to produce around 108 million tons. US imports 3-4 million tons of scrap and exports 9-11 million tons.