Head of major US steelmaker Nucor Corp said that some countries are flouting global trade rules and erecting barriers to key raw materials such as iron ore and scrap.
Mr Dan DiMicco chairman &CEO of Nucor told a steel industry gathering last week that “Raw material hoarding is a big issue facing the world whether you’re doing it or being affected by it. It’s a big issue, going to get bigger and it’s not going to be tolerated.”
Mr DiMicco who is often outspoken in his criticism of China’s state owned companies exporting lower priced steel to the US, did not say which countries were hoarding raw materials.
But he repeated his calls for Washington to take action against countries that do not play by global trade rules. That would include countries blocking steelmakers from buying key raw materials.
Asked during the Steel Success Strategies conference whether he favored tariffs or embargoes on US scrap exports, Mr DiMicco said action was needed.
He said that “It can’t be that you can buy raw materials from where you want to, but people can’t buy them in your back yard. It’s a big issue, governments are getting into it. We need stoppage of trade barriers to raw materials.”
It was essential, Mr DiMicco said that to enforce a level playing field for US steelmakers to compete in the global economy.
He added that “I believe the markets should function freely. When people come to the United States to buy scrap and we have to compete with them, so be it. What I would recommend is that any country that has barriers to the export of raw materials to the United States or anywhere else, not be allowed to buy scrap from our country.”
He warned of retaliation against any country putting limits on iron ore or scrap exports by saying “If you’re going to live by the sword then you’re going to die by the sword. That’s what I’d like to see and maybe people will stop doing it, If people do not do that and it becomes a burden on our industry then our government’s probably going to have to do something.”
(Sourced from Reuters)
