Steel: Price and Policy Issues [Updated August 31, 2006]   [open pdf - 197KB]

From the Summary: "Steel prices remain at historically elevated levels. The rapid growth of steel production and demand in China is widely considered as a major cause of the increases in both steel prices and the prices of steelmaking inputs. Steel companies have achieved much greater pricing power, in part through an ongoing consolidation of the industry. Most of the integrated side of the industry, nearly half of U.S. production, is controlled by just two companies: U.S. Steel, the traditional industry leader, and Mittal Steel, itself the result of multiple international mergers. […] Some policy developments in 2005-06 may affect domestic steel producers. [...] In December 2005 the U.S. International Trade Commission (ITC) terminated an antidumping case brought by domestic steel companies against steel wire rod imports, and President Bush decided in a safeguard case not to provide relief for domestic producers of steel pipe against imports from China. [...] In April 2006 the World Trade Organization (WTO) Appellate Body ruled against the 'zeroing' methodology used by the U.S. Commerce Department in calculating dumping margins. In the 109th Congress, 2nd Session, H.R. 5043 and H.R. 5529 were introduced, which would establish some changes sought by the steel industry in U.S. trade law, as well as a commission to review WTO decisions adverse to U.S. interests. This report will be updated as warranted by developments."

Report Number:
CRS Report for Congress, RL32333
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