[Congressional Record Volume 145, Number 34 (Thursday, March 4, 1999)]
[House]
[Pages H987-H988]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   WE NEED AN EFFECTIVE, GLOBAL SOLUTION TO ADDRESS THE STEEL CRISIS

  (Mr. QUINN asked and was given permission to address the House for 1 
minute and to revise and extend his remarks and include extraneous 
matter.)
  Mr. QUINN. Mr. Speaker, I rise today as chairman of the Executive 
Committee of the Congressional Steel Caucus to ask the House to direct 
our attention at the ongoing steel crisis in the United States. Because 
the U.S. remains the world's steel dumping ground, we need an effective 
global solution now to address the serious injury being done to 
America's steel companies, our employees, and our communities.
  Unfortunately, the administration's recent announcements of tentative 
steel agreements with Russia go in exactly the opposite direction of 
what is required. These agreements deny the petitioners the relief they 
are entitled to under law, and U.S. steel companies and employees 
strongly oppose the agreements.
  I agree with what the petitioners said in their February 22nd 
statement, that the way to help Russia is not by sacrificing the jobs 
and property of private sector industries and our modern world-class 
steel industry.
  Mr. Speaker, I include for the Record American Iron and Steel's 
February 19th Import Release, and the February 22nd reaction.
  The material referred to is as follows:

                             [News Release]

  1998 Steel Imports of 41.5 Million Tons Highest Ever--Annual Total 
Exceeds 1997 Record by One-Third 4th Quarter Imports Up 55 Percent From 
                         Same Period Last Year

       Washington, D.C.--In 1998, the United States had the 
     highest import tonnage ever, 41,519,000 net tons of steel 
     mill products, up 33.3 percent from the previous record of 
     31,156,000 net tons imported in 1997, the American Iron and 
     Steel Institute (AISI) reported today, based on a compilation 
     of U.S. Department of Commerce data. The 1998 import tonnage 
     was 77 percent higher than the annual average for imports 
     over the previous eight years. Total imports in 1998 
     accounted for 30 percent of apparent consumption, up from 24 
     percent in the same period of 1997. Fourth quarter imports in 
     1998, at 11,002,000 net tons, were 55 percent greater than 
     the 7,080,000 net tons imported in the fourth quarter of 
     1997.
       The U.S. imported 2,861,000 net tons in December 1998, up 
     35.6 percent from the 2,110,000 net tons imported in December 
     1997. December 1998 imported accounted for 29.0 percent of 
     apparent consumption, up from 20.6 percent a year earlier.
       With respect to finished steel imports, 1998 was also a 
     record. The total for the year was 34,744,000 net tons. Of 
     the total December 1998 imports, finished products were 
     2,443,000 net tons, up 41 percent from the 1,733,000 net tons 
     imported in December 1997. Excluding semifinished, imports in 
     1998 were 26 percent of U.S. apparent consumption.
       As the chart on page 3 shows, steel imports in 1998 surged 
     from many countries. Comparing fourth quarter 1998 with same 
     period 1997, imports were up 141 percent from Japan; up 162 
     percent from Russia; up 102 percent from Korea; up 65 percent 
     from Brazil; and up substantially from many other countries, 
     e.g., Indonesia (up 553 percent), India (up 365 percent), 
     China (up 131 percent), South Africa (up 73 percent) and 
     Australia (up 38 percent).
       Comparing fourth quarter 1998 product totals with same 
     period 1997: the 2,708,000 net tons for hot rolled sheet were 
     up 112 percent, the 1,222,000 net tons for cold rolled sheet 
     were up 42 percent; the 871,000 net tons for plate in coil 
     were up 181 percent; the 706,000 net tons for structural 
     shapes were up 130 percent; the 575,000 net tons for cut-to-
     length plate were up 180 percent; and the 523,000 net tons 
     for galvanized HD sheet and strip were up 24 percent.
       In response to the December and full-year 1998 import data, 
     Andrew G. Sharkey, III, AISI President and CEO, said this: 
     ``In 1998, the U.S. had a steel crisis caused by 
     unprecedented levels of unfairly traded and injurious steel 
     imports. The factors that caused this crisis remain. The 
     December level itself is too high to avoid sustained injury 
     to U.S. steel companies, employees and communities. Any 
     December decline can be directly tied to the pending trade 
     litigation on a single product category; hot rolled carbon 
     steel, from three countries--Japan, Russia and Brazil. 
     America's current steel import problem is global. The U.S. 
     steel import crisis continues.''
       Total 1998 exports of 5,519,000 net tons were 9 percent 
     lower than the 6,036,000 net tons exported in 1997. The U.S. 
     exported 366,000 net tons of steel mill products in December 
     1998, down 29 percent from the 512,000 net tons exported in 
     December 1997.

                                                                    U.S. IMPORTS OF STEEL MILL PRODUCTS--BY COUNTRY OF ORIGIN
                                                                                     [Thousands of net tons]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       12/98 vs 12/97 %
                                                                  Dec 1998           Nov 1998           Dec 1997            change          12 Mos 1998        12 Mos 1997        Ytd % change
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
European Union.............................................                540                656                481                 12               7214              7,482                 -4
Japan......................................................                436                828                199                119               6728              2,554                163
Canada.....................................................                341                381                380                -10               4914              4,775                  3
Brazil.....................................................                252                297                185                 36               2729              2,851                 -4
Mexico.....................................................                250                207                133                 88               3167              3,312                 -4
Korea......................................................                239                327                136                 76               3430              1,638                109
Russia.....................................................                167                738                133                 26               5274              3,319                 59
China......................................................                 66                 61                 41                 61                632                477                 32
Australia..................................................                 54                 58                 80                -33                951                439                117
South Africa...............................................                 43                 54                 19                126                649                315                106
Indonesia..................................................                 42                 37                 19                121                542                 91                496
Turkey.....................................................                 40                 53                 57                -30                527                614                -14
India......................................................                 31                  2                  3                933                377                194                 94
Ukraine....................................................                 24                 68                 70                -66                882                581                 52
Others.....................................................                336                264                174                 93               3504               2515                 39
                                                            ------------------------------------------------------------------------------------------------------------------------------------
      Total................................................               2861               4031               2110                 36             41,520             31,157                 33
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                  4th Qtr.     4th Qtr.    4Q 1998 vs 4Q
                                    1998         1997      1997 % change
------------------------------------------------------------------------
Japan.........................         2146          890             141
European......................         1883        1,752               7
Union.........................  ...........  ...........  ..............
Russia........................         1508          576             162
Canada........................         1132        1,156              -2
Korea.........................          859          426             102
Brazil........................          738          447              65
Mexico........................          626          646              -3
Australia.....................          247          179              38
China.........................          210           91             131
Indonesia.....................          196           30             553
South.........................          157           91              73
Africa........................  ...........  ...........  ..............
Ukraine.......................          155          164              -5
Turkey........................          110          178             -38
India.........................           79           17             365
Others........................          956          437             119
                               -----------------------------------------
      Total...................        11002        7,080              55
------------------------------------------------------------------------

              russian agreements on steel exports to U.S.

       Washington, D.C., February 22, 1999. Bethlehem Steel 
     Corporation, U.S. Steel Group, a unit of USX Corporation, LTV 
     Steel Company, Ispat/Inland Inc., National Steel Corp., 
     Weirton Steel, Gulf States Steel, Inc., Ipsco Steel Inc., 
     Gallatin Steel, Steel Dynamics, and the Independent Steel 
     Workers Union made the following statement in response to the 
     announcement that the Administration has reached agreements 
     with the Russian government to settle the hot-rolled steel 
     dumping case and to limit other steel exports to the U.S.
     Suspension agreement
       We continue to oppose a suspension agreement. It is 
     contrary to applicable laws and is inconsistent with the 
     Administration's own recent critical circumstances finding. 
     Further, it is contrary to the plan to respond to steel 
     imports which the President submitted to the Congress in 
     January.
       While we welcome the extremely high preliminary margins 
     ranging from 71 to 218% found by the Department in its 
     investigation, we deeply regret that the Department does not 
     want to allow this prescribed remedy to go into effect.
       Imports of Russian hot-rolled have increased 700% from 
     508,000 metric tons in 1995

[[Page H988]]

     to 3,468,000 metric tons in 1998, and they have been sold at 
     dumped prices substantially below the cost to produce them. 
     This has caused serious injury to the American steel industry 
     and the loss of thousands of steelworker jobs.
       The suspension agreement will authorize Russia to continue 
     to dump steel in America, which will continue to cause 
     serious injury to our industry. The tons of unfairly traded 
     steel that the Administration is going to allow Russia, at 
     750,000 metric tons per year, will still allow Russia to be 
     the largest single supplier to the U.S. market. The pricing 
     level given to the Russians of $255 per metric ton will both 
     allow continued dumping and allow inefficient Russian 
     producers to undercut and damage efficient U.S. producers.
       We have consistently requested the Administration to permit 
     our laws to be enforced as Congress intended, but by entering 
     this Agreement our rights have been taken away from us.
       We regret this development and will work to convince the 
     Administration that the proposed agreement is not in the best 
     interest of the nation or our industry. We are also 
     requesting Congress to have a prompt hearing about this 
     matter. If the Administration proceeds with this agreement, 
     we will take appropriate legal action.
     Comprehensive steel agreement with Russia
       We also oppose the comprehensive steel agreement negotiated 
     with the Russians. We would support such an agreement only if 
     it is a part of a global solution to the serious injury being 
     caused by unfairly traded steel. Any agreement with Russia 
     must be a part of an Administration initiated and supported 
     Sec. 201 action on all steel products which will result in 
     global quantitative restrictions, minimum prices, an adequate 
     enforcement mechanism, and a moratorium on further shipments 
     until the inventory of dumped steel has been cleared.
       While all the details of the Russian agreement are not 
     available, we are disappointed that they will be permitted to 
     ship at a rate well above the 1996 precrisis level.
       We do have concern over the serious economic problems 
     facing Russia, but to the extent the United States provides 
     financial and other aid, surely we should do this in behalf 
     of the United States from the Federal Treasury and not by 
     sacrificing the jobs and property of a specific private 
     industry sector such as our modern and world class American 
     steel industry.
       We will continue to work closely with the Administration 
     and the Congress to stop the serious injury being caused to 
     our industry and to restore fair trade in steel.
       For Media Contact: Bethlehem Steel Corporation, Bette 
     Kovach (610) 694-6308; U.S. Steel Group, USX Corporation, Tom 
     Ferrall (412) 433-6899; Ispat/Inland Inc., John Nielsen (219) 
     399-6631; LTV Steel Company, Mark Tomasch (216) 622-4635; 
     National Steel Corporation, Clarence Ehlers (219) 273-7327; 
     Independent Steel Workers Union, Mark Glyptis (304) 748-8080; 
     Weirton Steel, Greg Warren (304) 797-2828; Gulf States Steel, 
     Inc., John Duncan (256) 543-6100; Ipsco Steel, Inc., Anne 
     Parker (306) 924-7390; and Gallatin Steel, Ed Puisis (606) 
     567-3103.

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