US steel industry is in crisis

Rob Robson, director of corporate logistics at Nucor, told the US Senate. The statement was made during his speech in the Senate, with the aim of increasing support for the domestic metallurgical industry, which, in his opinion, is in crisis. The Water Resources Development Act (WRDA) can also help to improve the situation.

According to Robson, the dumping of steel products supplied to the US market has reached an all-time high amid surplus steel production by global countries. The country's steel trade is in violation of international trade laws, he added. Unfair trade practices have led to a significant reduction in internal use of steel production capacity. For example, capacity utilization in 2015 fell to less than 70 percent. Consequently, prices for steel products have had an unprecedented decline throughout the year. The growth in domestic steel consumption is associated with the use of materials from foreign manufacturers. Local steelmakers in the country are struggling to survive, Robson said.

Commenting on WRDA, Robson noted that efficient use of ports and waterways will provide the most competitive cargo handling solution, which, in turn, will be more profitable for domestic steel producers over foreign competitors. Robson also believes that the law could stimulate the operation of metalworking centers and capital investments in the domestic metallurgical industry.

Incidentally, WRDA funds include projects to modernize and expand US waterways and ports. At the same time, Congress must pass the WRDA law every two years and has done this three times in the recent past in 2000, 2007 and 2014.