[Congressional Record Volume 144, Number 149 (Monday, October 19, 1998)]
[Extensions of Remarks]
[Page E2237]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        REGARDING STEEL IMPORTS

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                               speech of

                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                       Thursday, October 15, 1998

  Mr. COLLINS. Mr. Speaker, I strongly support H. Res. 598 introduced 
by the gentleman from Ohio. There are dramatic changes that are 
occurring in our domestic industries affected by increases in steel 
imports. That impact is affecting all levels of U.S. business and their 
employees--from the small scrap dealers all the way up the industry 
chain to the large manufacturers who have a high production demand for 
steel.
  The steel market is extremely reactive to supply and demand. 
Consequently it is one of the strongest indicators of the economic 
strength of our domestic manufacturing industries. Even the chairman of 
the Federal Reserve has stated that he closely watches steel market 
indicators in evaluating the progress of our national economy.
  While steel industry prices have grown relatively steadily over the 
past ten years in the last 10 months there has been a dramatic drop. 
The change indicates that something unusual is currently going on in 
the market place.
  According to American Metal Market Weekly Steel Scrap Price 
Composites, between January and October of 1998, the price per gross 
ton for heavy melt steel scrap has dropped from $140 to $83.67.
  In addition, the gross ton price for shredded scrap metal has dropped 
form approximately $146 in January of this year to the current price of 
$94.84.
  Mr. Speaker, opponents of H. Res. 598 argue that this is a consumer 
issue--that a higher presence of foreign steel makes end-stage 
manufacturing cheaper and ultimately the final price to consumers 
lower. However, it is more than simply cheaper steel prices because 
final manufacturing is not the only line of business affected by an 
increase in steel imports. There are broader implications for our 
economy. The failure to enforce the terms of existing trade laws, which 
essentially sanctions the dumping of foreign products in this country, 
hurts U.S. businesses that supply scrap steel to end-stage 
manufacturers. Cutting off the demand for domestic steel means the 
elimination of their business and ultimately a reduction in U.S. jobs.
  I have small business scrap metal suppliers in my district who sell 
their scrap metal to U.S. manufacturers. They have told me that there 
is so much foreign metal pouring into this country through southern 
ports it is having a real impact on their business. In fact there are 
at least 2 steel mills in the southeast who, as a result of the 
increase in imports, have not purchased any U.S.-sourced scrap metal in 
the past 2 months. That means U.S. suppliers are losing business--and 
that means another nail in the coffin for businesses that supply 
domestic manufacturers.
  The resolution before us today simply states that the Administration 
should make studying the recent shift in the domestic market a 
priority. At minimum, the President should focus on whether violations 
of current trade laws and agreements are being committed to the 
detriment of U.S. business and the loss of U.S. jobs. Cheaper steel 
attributable to increased imports may mean cheaper prices for 
consumers, but in the end it may mean fewer jobs for Americans and that 
possibility is worthy of our attention. I urge support for H. Res. 598.

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