[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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