U.S. steel industry undergoing revolutionary change; health on the horizon

The message coming out of the well-attended Congressional Steel Caucus Field Hearing in Pittsburgh this past summer was the long-term strategic importance of a strong North American manufacturing base and the role the steel industry can play in that endeavor. David S. Sutherland, chairman of Washington-based American Iron and Steel Institute (AISI), testified that the industry is undergoing major structural change—which he termed revolutionary and predictable—and that these changes bode well for the long-term health of the industry.

"The dramatic changes to the steel market are global in scope and are based on well-established economic principles," says Sutherland. "Moving forward, the newly restructured and more financially stable U.S. steel industry will be a more competitive and more sustainable business partner for the American manufacturing sector and for U.S. national security."

Sutherland cites numerous forces at play, especially China's hard push toward industrialization. "Ongoing growth of China's industrial sector and consumer demand will continue to drive global demand far into the future," maintains Sutherland. Reduced domestic supply and rapidly rising demand have resulted in escalating prices for steel mill and related products on a global basis.

Industry representatives included John Surma, U.S. Steel Corp.; John Nolan, Steel Manufacturers Association; and Jack Shilling, Specialty Steel Industry of North America. The industry is in support of strengthening and extending the import monitoring program currently slated to expire in March 2005. The AISI is championing more effective government trade policy, including more stringent enforcement of existing domestic laws and international agreements.