A JOINT RELEASE OF THE STEEL MANUFACTURERS ASSOCIATION AND THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES

Scrap Recycling and Steel Industry Execs Hold Issues Summit

WASHINGTON—Steel and scrap industry CEOs met last Thursday in what is being called a significant opportunity to further cooperation between consumers and suppliers of iron and steel scrap.

Institute of Scrap Recycling Industries (ISRI) Chair Joel Denbo and Steel Manufacturers Association (SMA) Chair Keith Busse convened the meeting of several industry leaders to air issues of mutual concern between the scrap processing and scrap consuming industries with the goal of improving the level of trust, understanding, and interaction between the two industries.

The group identified several action items that the two industries can work together on to solve problems and to provide better information and understanding.

“Individually, scrap recyclers and steel industry officials work together well every day,” said Joel Denbo. “We are seeking ways to build on these individual relationships to build a stronger industry up and down the supply chain. I am very pleased to see open lines of communication at all levels.”

Keith Busse concurred, noting the importance of dialogue between scrap recyclers and consumers. “These two manufacturing industries face unique challenges – some that we share and some that can conflict,” Busse said. “The general spirit of open communication and this meeting in specific give us an opportunity to work on our common problems together and to discuss our individual concerns frankly.”

The high-level participants in this meeting discussed a variety of issues important to the scrap supply chain. Among the issues discussed:

Quality of Publicly Available Scrap Data – Scrap recyclers and steel industry participants agreed that the industries as well as their respective customers could benefit by more accurate and timely reporting of scrap prices. The group discussed a variety of ways to improve the public dissemination of price data, ultimately deciding that a joint task force of SMA and ISRI members, with counsel, be tasked with evaluating this issue more thoroughly and recommending positive solutions. Task force members from both sides will be appointed in September.

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Transportation – The group discussed transportation problems facing the industry that were impacting processors’ ability to ship product to their consumers and the distorting effect this was having on the market. The transportation problems are occurring in both rail and truck and are the result of a number of factors, including: new hours of service rules, shortage of crews, shortage of gondolas, and railroads stating their intent not to buy additional gondolas, etc. It is estimated that the processing side of the industry is facing a 25% shortfall in its transportation needs. The SMA and ISRI will jointly address the issue with transportation officials and will seek partnerships with other manufacturers.

Environmental Issues – Mercury, PCBs, and radioactive detection are just a few of the common issues facing the scrap recycling and steel industries. The group suggested that members of ISRI and SMA environmental committees hold a joint meeting to identify common concerns and explore cooperative efforts to address these issues.

Product Quality – The group discussed product quality issues that have risen recently. Copies of the ISRI Scrap Specifications Circular were distributed and steel industry officials were invited to provide suggested changes that could improve the quality of products delivered to consumers. The group also discussed Recycling Industry Operating Standards (RIOS), the new ISRI-led quality, environmental, health and safety standard currently in development and ways these new standards could aid both industries in improving product quality.

Global Trade Issues – The group acknowledged a shared interest in fighting export controls globally in places such as Russia, which continues to restrict the export of scrap materials. ISRI reiterated its willingness to work with consumer organizations toward a free and fair trade policy.

With these action items identified, the group set a second meeting to be held in mid-February during the SMA Board of Directors meeting.

Participants in the meeting included:

Keith Busse, SMA Chair; President and CEO of Steel Dynamics, Inc., Fort Wayne, Ind. Phil Casey, President and CEO of Gerdau Ameristeel, Corp., Tampa, Fla. Don Daily, Vice President and General Manager of Gallitin Steel Co., Ghent, Ky. Joel Denbo, ISRI Chair; Chief Manager of Operations for Tennessee Valley Recycling, LLC, Decatur, Al. Daniel R. DiMicco, Vice Chairman, President, and CEO of Nucor Corp., Charlotte, N.C. Rob Goldstein, President, Alter Trading Corp., St. Louis, Mo. Avery Hilton, Executive Vice President and Mill Manager, CMC Steel Group, Seguin, Tex. John Neu, Chairman and CEO, Hugo Neu Corp., New York, N.Y. Jeff Padnos, President and COO, Padnos Iron and Metal Co., Holland, Mich. Skip Rouster, Midwest Region President, Metal Management, Inc., Chicago, Ill. Cricket Williams, Vice President, Davis Industries, Inc., Lorton, Va. Tom Danjczek, President, Steel Manufacturers Association, Washington, D.C. Robin Wiener, President, Institute of Scrap Recycling Industries, Inc., Washington, D.C. Scott Horne , Chief Counsel, Institute of Scrap Recycling Industries, Inc., Washington, D.C.

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