Welcoming better news in the new year

For many people, a new year means a new start—a time to hit the “reset” button on life. Many scrap metal processors who saw the values of ferrous and nonferrous scrap decline month after month in 2015 probably are more eager than most to reset in 2016.

December brought the first good news scrap metal processors who deal in ferrous scrap have seen in months, as prices for various grades of ferrous scrap held steady rather than declining as they did for the previous five months. However, the stability seen from November to December of 2015 may not necessarily signal a stronger market to come in 2016, as the global steel industry continues to suffer from an oversupply of inventory heading into the new year.

“The stability seen from November to December of 2015 may not necessarily signal a stronger market to come in 2016, as the global steel industry continues to suffer from an oversupply of inventory heading into the new year.”

The American Iron and Steel Institute (AISI) finds reason for hope, however, as a result of the U.S. House of Representatives’ passage of a compromise agreement on a trade enforcement measure, which AISI says is a “positive step for the steel industry to address the evasion of trade remedy orders that has severely impacted our companies and our workers.”

The bipartisan, bicameral trade legislation puts tools in place that are designed to strengthen trade enforcement at the border and to facilitate the efficient movement of legitimate trade and travel, according to the bill’s sponsors, Senate Finance Committee Chairman Orrin Hatch, House Ways and Means Committee Chairman Kevin Brady, and Senate Finance Committee Ranking Member Ron Wyden.

The House passed the Trade Facilitation and Trade Enforcement Act, which includes the ENFORCE Act, which AISI describes as “a long-standing priority focus for steel as it provides the domestic industry with new tools to address the evasion of antidumping (AD) and countervailing duty (CVD) orders. The measure would ensure that Customs and Border Protection (CBP) officials investigate industry claims of AD/CVD evasion by set statutory deadlines.”

Thomas J. Gibson, president and CEO of AISI, says, “Dumped and subsidized steel imports are taking a record share of the U.S. market and are resulting in major facility idlings and layoffs. The effectiveness of trade remedies hinges on ensuring that the duties authorized by law are in fact collected. Enactment of the ENFORCE Act [as included in this Customs Bill] will help to ensure that is achieved.”

He adds, “We commend the leadership of the Congressional Steel Caucus and many of our steel champions in Congress, who worked with us and our member companies to make sure the steel industry’s dire situation was front and center in trade debates.”

While Gibson is celebrating this victory, he says the war against “trade distorting practices of foreign producers and governments” continues. However, this news offers hope to U.S. steelmakers and their suppliers that the future may be brighter.