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August
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Top StoriesNew Report Examines Chinese SubsidiesA new economic study detailing the Chinese government's massive subsidies to its steel industry was released this week. The study, sponsored by AISI, the Steel Manufacturer's Association (SMA), the Committee for Pipe and Tube Imports (CPTI) and the Specialty Steel Industry of North America (SSINA), examines how these subsidies have allowed the Chinese steel industry to have an unprecedented growth rate over the past few years. The report, entitled Money for Metal: A Detailed Examination of Chinese Government Subsidies to its Steel Industry, documents more than $50 billion in subsidies granted to Chinese steel producers by the Chinese government. The study, written by Wiley Rein LLP, expands earlier research through a detailed review of the financial statements of leading Chinese steel producers, including but not limited to Angang, Baosteel, Laiwu, Maanshan, Shougang and Wuhan. The report documents a wide range of government subsidies, including the following:
"The result of these massive subsidies is that China's government-controlled steel production is distorting the world marketplace, and the problem is only getting worse," said Andrew G. Sharkey, III, president and CEO of AISI, during an audio press briefing about the report. The report states that between 2000 and 2005 government subsidies allowed China's steel production to increase by more than 170 percent and an additional 20 percent in 2006 alone. Subsidies also helped China become the largest single steel exporting country by volume in 2006. "China's massive subsidies and pervasive government control of its steel industry are unprecedented and violate WTO rules," said Alan Price, partner at Wiley Rein LLP and one of the study's authors. "Eight of the ten largest Chinese steel groups are 100 percent controlled by the Chinese government, and more than 90 percent of the production of China's top 20 steel groups is state-controlled." The $52 billion documented subsidies discussed in Money for Metal are only a fraction of the subsidies that actually exist, due to the limited number of Chinese steel companies reviewed and the partial nature of the data that even those companies report. To read the entire report, visit www.steel.org. For more information, contact Barry Solarz. AISI Launches Summer Safety CampaignIn June, AISI launched part one of a three-part series on summer safety. The campaign provides tips for consumers on how to stay safe during the summer months when areas are hit hard by hurricanes and wildfires and also when automotive travel is up. As part of the campaign, AISI partnered with Harris Interactive, a global market research firm, to conduct omnibus surveys on automotive safety, wildfire safety and emergency preparedness. The campaign builds upon the public's natural tendency to associate steel with safety and protection. AISI launched the campaign with its first news release on June 13, highlighting the importance consumers place on steel frames, seat belts and air bags in their cars. The automotive safety survey found that 81 percent of consumers said that steel is the automotive material that provides the best protection in the event of a car crash. This survey was complimented by information AISI posted on its Web site, including tips on how to avoid aggressive driving as well as tips for safe summer driving. A fact sheet on steel's role in automotive design provided information about the unique ability of new high strength steels to both absorb energy and to help protect occupants involved in high-speed crashes. A month later, AISI reported on consumers' preferences in the face of wildfires with survey results indicating that 87 percent of consumers would consider installing a steel or metal roof on homes built in wildfire-prone areas. A majority of homeowners polled also support government-mandated building codes requiring the use of fire-retardant materials, such as steel. In addition, Kim Raddatz, fire chief for the city of Coronado, Calif., praised the advantages of steel roofing from a firefighter's perspective and discussed why he put a steel roof on his own home. As part of the campaign, AISI spokesman Bill Heenan is appearing on radio shows in wildfire-prone-areas to discuss the advantages of steel roofing. In the beginning of
September, AISI will work in conjunction with National Preparedness Month.
The focus of the third part of the summer safety campaign will be on the
advantages of steel when it comes to emergency preparedness, whether it
is steel cans or steel framing. AISI will also compile tip sheets on how
to prepare for natural disasters such as hurricanes, floods and earthquakes.
For more information, contact Maureen
Iselin. The Gulf Coast Steel Initiative Supports 2007 Children's Miracle Mansion
On June 2-3, following a telethon on WBRZ, Channel 2 in Baton Rouge, La., the steel-framed 2007 Children's Miracle Mansion helped raise a record $1.79 million for Our Lady of the Lake Children's Hospital. Every year, the hospital raffles a homethe Miracle Mansionto raise funds for treating approximately 60,000 children per year. The proceeds are used to purchase equipment that the pediatric center otherwise wouldn't be able to afford. The home is the first Miracle Mansion to feature a steel framing system. "The Miracle Mansion project provided a unique opportunity for the Gulf Coast Steel Initiative to build public awareness of the benefits of the steel-framed home while using our resources to support a great cause," said David C. Jeanes, AISI's senior vice president of market development. "It also provided the opportunity to demonstrate to local builders that steel could be a viable alternative to wood in the Gulf Coast region." The construction of the steel-framed Miracle Mansion sets a new paradigm in home construction in the Gulf Coast region. The 4,200-square-foot, four-bedroom, four-bath home was the first to be built within Baton Rouge's city limits and was estimated to be worth more than $500,000. Larry Williams, president of the Steel Framing Alliance, commented: "There's a willingness to look at other ways of construction because of the recent weather events. We provided information to local builders about corrosion resistance, wind resistance and termite resistance. When you sit down and talk to someone about the benefits of steel framing, in many cases the benefits are so obvious that you really don't have to present a lot of information." Steel framing can be designed to withstand hurricane-force winds up to 150 mph and greater, and does not provide a food source for mold and termites. Termites especially are a problem in the Gulf Coast area. After Hurricane Katrina, homeowners became aware of the damage termites had caused as walls were torn open. According to Williams, New Orleans is one of the few cities around that world that has a government agency specifically formed to deal with the issues surrounding termite and mosquito problems. He notes that a recent study by the Termite and Mosquito Control Board found that there are an estimated 600 million termites living and eating in the area. In addition to resisting wind and pests, steel won't burn, warp, crack or split. This provides homeowners with straight, square walls without nail pops. The framing's zinc coating prevents the possibility of corrosion, a feature that Williams notes is important in a high-humidity environment. The construction of the steel-framed Miracle Mansion is yet another step to building back communities and providing a stronger Gulf Coast region. The 2007 Miracle Mansion's location on a main thoroughfare of Baton Rouge certainly will provide the home and its contributors with a lot of visibility. "It's important to recognize how many companies came together to make this happen," Williams says. "We couldn't have done it without them." For more information, contact Larry Williams. Canned Food Fares Well With New Farm BillCanned food has successfully been included in the U.S. House of Representatives 2007 Farm Bill, which was passed on July 27. The bill provides a $286 billion, five-year renewal of agricultural programs. It will replace the current legislation that expires at the end of September. The bill included recommendations made by the Canned Food Alliance (CFA). The CFA's nutrition research and promotional program played an essential role in gaining recognition for canned food under this bill. The CFA is especially pleased with the increase in funding for USDA Section 32 purchases of all types of fruits and vegetables. The House Farm Bill doubles the amount of USDA purchases of fruits and vegetables using Section 32 funds. In addition, the bill increases funding for the Specialty Crop Block Grant program, which allows states to apply for USDA funds to promote all types of fruits and vegetables. Additionally, the CFA is encouraged by the fact that the House did not include a "fresh only" fruit and vegetable incentive program in the Food Stamp program, but now allows all forms of fruits and vegetables to be promoted. The bill also increases the number of households eligible for food stamps, allowing increased access and availability of fruits and vegetables in all forms for low-income populations. The Senate is expected
to consider its version of the Farm Bill in September. The CFA looks forward
to continuing its work with Congress to develop and implement sound food
and nutrition policies and programs to help Americans eat more fruits
and vegetables. For more information, contact
Rich Tavoletti. SRI Educational Program Impacts Science Teachers and State GovernorsAs part of its Vision 2009 focus, the Steel Recycling Institute (SRI) is placing renewed emphasis on its educational efforts for students from kindergarten through high school and their teachers. These educational efforts include everything from informational games on ROSCOE's Recycle Room (www.recycleroom.org) to Cycles for Science, which was created to assist secondary teachers and students (grades 9-12) in meeting state and local goals for learning in biology, chemistry, general/earth science and physics. The curriculum meets educators' needs for information on recycling, solid waste management and natural resource management. Cycles for Science is distributed to teachers at the annual ASM Materials Camp. One of the attendees wrote to SRI about the impact of the curriculum on her job: I have been attending
a Materials Science Camp, and the instructors have distributed some of
the lesson plan books that are sponsored by your company. I just want
you to know that I really appreciate the donation! I have taught recycling
and conservation for the last four years that I have taught science. Before
today, I have never seen any lesson plans on these topics, and it certainly
isn't in the textbooks, so I have had to research all of my information
on my own, which is time consuming. What I am trying to say is that anything
you do to help educate children or teachers so that they can educate children
is greatly appreciated and WILL BE USED! Thank you so much! Cycles for Science was also presented at the annual National Lieutenant Governors Association (NLGA) on July 25-27, where the governors were encouraged to distribute the curriculum in their respective states. At the conference, SRI representatives discussed steel recycling and steel's sustainable benefits and efforts in automotive, construction and container markets with this influential audience. Bill Heenan, president of the SRI, said: "SRI's educational outreach is critical to the foundation that our industry has built to establish steel as the most recycled material on the planet. We are reaching the next generation of recyclers through our educational programs-efforts that will have a lasting effect for many years to come." For more information, contact Jim Woods. The Capitol Line"China Bills" See Action on Capitol HillThe House Ways & Means Trade Subcommittee is set to hold a hearing on several "China bills" before the August recess begins. The hearing will address a wide-range of trade-related issues, including currency misalignment, modifications to "zeroing" practices and consideration of the application of countervailing duty (CVD) law to non-market economies (NMEs). A significant focus will be placed on several very important trade bills backed by AISI and the steel industry. Legislation introduced by Rep's Artur Davis (D-AL)* and Phil English (R-PA)*, entitled the "Non-Market Economy Trade Remedy Act" (H.R.1229), is expected to garner some of this attention, as is Rep. Tim Ryan's (D-OH)* and Duncan Hunter's (R-CA) "Currency Reform For Fair Trade Act" (H.R.2942), and Rep. John Spratt (D-SC), Richard Neil (D-MA), Gresham Barrett (R-SC) and Ralph Regula's "zeroing" and "Bratsk" ruling bill (H.R. 2714). Trade experts anticipate the House Ways & Means Committee to introduce a broad China bill incorporating many of the key features of the above mentioned legislation later this session. * Denotes Steel Caucus Member For more information on AISI's "China bill" efforts, please visit AISI's Public Policy Web site.Senate Also Making Progress on "Currency" FrontThe Senate Finance Committee recently held a mark up session on China currency legislation introduced by Senators Max Baucus (D-MT)*, Charles Grassley (R-IA)*, Chuck Schumer (D-NY)* and Lindsey Graham (R-SC)*, entitled the "Currency Exchange Rate Oversight Reform Act of 2007" (S.1607). In addition, the Senate Banking, Housing and Urban Affairs Committee also expressed interest in moving legislation to address the currency issue, and is now considering mark up of a bill crafted by Senators Chris Dodd (D-CT) and Richard Shelby (R-AL)* called the "Oversight to Protect U.S. Jobs and Combat China Currency Manipulation Act" (S.1610). It is anticipated that this legislation, along with the Baucus/Grassley/Schumer/Graham bill (S.1607) and another alternative effort offered by Senators Debbie Stabenow (D-MI)* and Jim Bunning (R-KY)*, 'The Fair Currency Act," S.796, will likely be merged to form one legislative vehicle that addresses the major features of all three bills (so long as public pressure for Congressional action on China currency issue remains, which is expected). AISI supports these specific currency efforts, but has offered several recommendations to committee staff to properly strengthen the bills' effectiveness in addressing the misalignment issue. AISI will continue to push lawmakers, and their staffs, to pass a strong China currency bill later this year. * Denotes Steel Caucus
Member AISI Helps Rally Congressional Support for Continuation of AD/CVD Orders on Hot-Rolled Flat Products from Non-NAFTA RegionsThis past month, the Institute helped coordinate an industry-wide effort to encourage Members of Congress (MOCs) to appear before the ITC on July 31st and August 1st, regarding a "Sunset" review on hot-rolled carbon flat steel products from eleven non-NAFTA countries, including China and India. Various Steel Caucus Members were encouraged to participate in this hearing, with over 25 House and Senate lawmakers agreeing to provide verbal or written testimony in support of the continuation of AD/CVD orders against the listed countries. Notable attendees include: House Steel Caucus Chairman Rep. Pete Visclosky (D-IN)*, House Vice-Chairman Rep. Phil English (R-PA)*, Senate Steel Caucus Chairman Sen. Jay Rockefeller (D-WV)* and Senate Steel Caucus Vice-Chairman Sen. Arlen Specter (R-PA)*. * Denotes Steel Caucus
Member House Expected to Take Up Energy-Efficiency Bill Before August RecessAt the end of July, House leadership acknowledged plans to debate a 786-page energy-efficiency bill entitled, "The New Direction for Energy Independence, National Security, and Consumer Protection Act" (H.R. 3221). As drafted, this legislation contains several provisions of concern to the domestic steel industry, including implementation of a "renewable portfolio standard" (RPS) requiring utilities to produce portions of their power via renewable sources, and significant roll-backs in domestic energy supply development originally instituted through the "Energy Policy Act of 2005" (EPACT '05). AISI is working hard to educate lawmakers regarding the impact of these provisions on domestic steelmaking operations. The institute is also encouraging Producer and Associate Member Companies to contact House leaders and their Congressional delegations (through the AISI Legislative Action Center) and ask that they reconsider the inclusion of such provisions in the final bill. For more information
on AISI's Energy-Efficiency Bill efforts, please visit AISI's Public
Policy Web site. For more information on AISI's Congressional outreach efforts on H.R. 3221, please visit AISI's Public Policy Web site. Check Out AISI's Public Policy Efforts on the WebAISI's
Legislative Action Center National
Journal's Policy Council - AISI Micro-Site Homepage For more information on these websites, contact Matt Davison.
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More StoriesStudents Turn Car Design "Inside Out"Six college students are turning car design inside out during the annual AISI/College for Creative Studies (CCS) Summer Internship Program, which was launched in May 2007. As the theme for this year's program, "Inside Out" emphasizes steel's crash protection capabilities while providing comfort and optimal handling for passengers. Since 1989, the AISI/CCS Summer Internship Program has challenged students to design concept cars that range from visual appeal to versatility of application. They work toward one basic goalto use advanced steel technologies in designing safe, affordable, fuel efficient and environmentally responsible vehicles. In 2006, the program added the University of Michigan (U-M) engineering students. Three transportation design students from CCS and three engineering students from U-M are putting their expertise together to design three different concept cars that are as much horsepower as machine, incorporating advanced high-strength steel and safety technologies. CCS students Tyler Mars, Tim O'Donnell and Nicholas Stone and U-M engineering students Jennifer Hoskins, Zoheb Kahn and Alok Pradhan are working with AISI steel applications specialists and automotive designers in every aspect of automotive design and development-from concept to model production, including materials and methods. The internship experience includes trips to a steel mill and an automotive stamping/assembly plant, giving the students a broad approach to the design of their vehicles. On September 19, the students will unveil their designs in a presentation to senior executives from the "Detroit Three," as well as national automotive media. The concept cars will be displayed throughout the year at premiere automotive events such as the North American International Auto Show. The AISI/CCS program provides students with an introduction to advanced high-strength steel technologies and valuable experience to take into the marketplace. For more information, contact Deanna Lorincz. FeMET Design Grant Awarded to LeTourneau University ProposalAs a part of FeMET's Design Grant Program, the proposal from LeTourneau University titled "Numerical Modeling and Physical Simulations of Steel Coil Welding for Continuous Processing" has been awarded a grant of $49,612. This grant will not only work to solve an industry issue but will also increase steel industry knowledge among the academic community. The FeMET Design Grant Program directs a team of students and professors to address an important industry issue or challenge by working collaboratively. The theme for this year was "Application of State-of-the-World Modeling Techniques to Steel Processes." Proposals were judged based on technical approach and relation to the theme, probability of success, and its potential benefits and team qualifications. For more information, contact BV Lakshiminarayana. Workforce Training Key to Building Back Better in Gulf Coast Region
A key component to rebuilding the Gulf Coast region back stronger and better with steel is a trained, competent workforce. Through the Gulf Coast Steel Initiative (GCSI), the Steel Framing Alliance (SFA) and Metal Roofing Alliance (MRA) have established programs with local community colleges to train a new workforce. Skilled workers are in short supply throughout the region, and these programs are expected to steer more workers toward steel construction. SFA has developed a training program and educational materials-such as an instructor and student manual, equipment and tool list, and cost estimates-for students at the Nunez Community College in Chalmette, La. More than 50 students have graduated from the program since it was launched in November 2006. The SFA program has been so successful that the curriculum will be used by the Louisiana Community and Technical College System and the Louisiana Department of Education as they sponsor the Super Summer Institute on July 30-August 3 at Nunez Community College. The Super Summer Institute will train high school and post-secondary carpentry instructors in the fundamentals of steel framing. Nineteen secondary and six post-secondary instructors from vocational programs throughout Louisiana have signed up to participate. The session will include classroom instruction on steel framing construction methods and hands-on training that will result in the construction of a "Cajun Cottage." The plan is to make this an annual event. "One of the great successes about this program is that we laid the foundation to teach steel framing, but others are now moving ahead with it, allowing us to expand our reach in this region," said Larry Williams, president of SFA. MRA has developed a new curriculum for training metal roofing installers, which is now being utilized at the Gulf Coast Community College in Gulfport, Miss. The program includes hands-on training with four different metal roofing styles that will stand up to hurricane-force winds. As consumers "build back better" with metal roofing, the need for trained installers is multiplied. "We are filling a tremendous need in training a new workforce here," said Tom Black, executive director of MRA. "Our experience in other regions is that for every metal roof installed, two new sales are generated in that community. We are anticipating a significant growth opportunity as consumers recognize the value of a durable 'Investment Grade' metal roof." For more information, contact Debbie Bennett. AISI Delegation Visits Chinese Steel FacilitiesRepresentatives from ArcelorMittal, IPSCO, Nucor and U.S. Steel were joined by AISI and IISI staff for a June tour of four large steelmaking operations in China with combined production capacity of almost 80 million tons. The four steelmaking complexes included Baosteel in Shanghai, Wuhan Iron and Steel in Wuhan, Shougang Iron and Steel in Beijing, and Tangshan Iron and Steel in Tangshan.The tours were organized after AISI members, with concerns about Chinese steelmakers' environmental performance and priorities, requested to see the facilities firsthand. In addition to visiting the steel facilities, the AISI delegation met both formally and informally with local environmental management in China. The delegation was able to learn about the Chinese steelmakers' environmental priorities, observing many of them firsthand. For more information, contact Jim Schultz. New and Revised Cold-Formed Steel Structural Framing Standards AvailableAISI's Committee on Framing Standards gained approval by the American National Standards Institute (ANSI) of a new North American Standard for Cold-Formed Steel Structural FramingProduct Data, and updated North American editions of its standards on General Provisions, Header Design and Truss Design. The standards, the first four in a series, were recently released by the AISI Committee on Framing Standards. A noteworthy change is that this is the first time the standards are specifically for North America, intended for adoption and use in the United States, as well as Canada and Mexico. In addition, a new numeric designation system has been introduced to better reference the documents in codes and specifications. AISI S200-07 is the new designation for the revised Standard for Cold-Formed Steel FramingGeneral Provisions. Definitions for terms and commentary language have been centralized to provide guidance and assure consistency on standards. The minimum base metal thickness table was removed and users are deferred to an approved design or recognized product standard. Referenced document and product identification requirements were updated. AISI S201-07 is the designation for the new Standard for Cold-Formed Steel FramingProduct Data. Intended to establish and encourage the production and use of standardized products, provide criteria for cold-formed steel utilized in structural and non-structural framing applications, defines standard material grades and specifications, minimum base steel and design thickness, and coatings for corrosion protection. AISI S212-07 is the new designation for the revised Standard for Cold-Formed Steel FramingHeader Design. The referenced document listing was updated, requirements for evaluating shear were added and provisions were included for designing inverted L-header assemblies. AISI S214-07 is the new designation for the revised Standard for Cold-Formed Steel FramingTruss Design. The referenced document listing was updated, and the standard and commentary were revised. Provisions for designing gusset plates were added and the special beta-factors for trusses were deleted. The AISI Committee on Framing Standards continues work on North American editions of its standards on Lateral Design and Wall Stud Design, Floor and Roof System Design, and is in the process of developing the Prescriptive Method for One and Two Family Dwellings, available in fall 2007. These documents will provide a suite of state-of-the-art documents, which are intended to help enable, encourage and sustain the growth of the cold-formed steel structural framing industry. The first four standards can be purchased from the Steel Framing Alliance, either online (www.steelframing.org) or by phone (toll-free 1-866-465-4732). For more information, contact Jay Larson. Manufacturing Committee on Hot Strip Mills Focuses on SafetyAISI's manufacturing committee on Hot Strip Mills' spring meeting, hosted by SeverStal North America, was held June 14-15. Twenty representatives from nine member and two associate member companies were in attendance. The first day's session started off with a safety presentation by Donald Tesin, a safety engineer of SeverStal North America, who talked about general safety practices at SeverStal. After Tesin's presentation, the group talked further about safety and then went on to review environmental and reliability practices and issues. They also discussed practices for energy conservation. Day One concluded with a very informative plant tour (pictured left). On Day Two, the group discussed new benchmarking ideas and reviewed planning for the upcoming 2008 Hot Rolling Fundamentals course, which is being offered by the Association for Iron and Steel Technology (AIST) in collaboration with this committee. Plans are underway for the fall meeting hosted by Nucor-Crawfordsville on October 18-19, 2007.
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