US steel industry may ask Bush to take certain measures

US steel industry may ask Bush to take certain measures

According to recent news in the market, US steel manufacturers, consumers and certain steel associations are in preparation of asking Bush administration to take certain measures to protect US steel industry. US steel industry is stated to be suffering from raw material shortage problem mainly as a result of strong demand from China, causing prices to increase in domestic market. Bush administration lifted S201 tariffs back in December 2003 however certain impediments on steel imports such as anti-dumping duties went on putting manufacturers into difficulty. In line with the surging demand, raw material supply problems together with the price increases, US steel manufacturers, consumers and related steel associations are in preparation of requesting from Bush administration to take certain measures to protect US steel industry. However, steel manufacturers, consumers and certain steel associations are suggesting different solutions for the problem. For instance, a coalition of steel manufacturers and consumers Emergency Steel Scrap Coalition is in preparation of asking Bush administration to limit scrap exports, so that the scrap will be consumed in domestic market and the prices will not increase further. Meanwhile, the Consuming Industries Trade Action Coalition (CITAC) is also in preparation of asking Bush administration to lift impediments on steel industry such as anti-dumping duties. An official from CITAC stated that, although the Section 201 tariffs were removed in December 2003, steel industry has still been facing supply problem and suffering from rising prices. The prices are stated to have increased by 30% due to strong demand from China and weak US dollar, since the beginning of the year. On the other hand, according to the statement released from American Iron and Steel Institute (AISI), the group defends steel duties and wants them to remain in effect. An official from AISI stated that the anti-dumping and countervailing duties are preventing US steel industry from being injured by the cheap imports and hindering illegal trade, adding that elimination of the duties on imported steel products will shake US steel industry.