WASHINGTON — Amid falling steel prices, a “steel renaissance” depends on the development of cost-competitive energy prices, according to steel executives speaking Thursday.
The steel company executives highlighted industrial energy efficiency efforts when they met this week at the American Iron and Steel Institute in Colorado Springs, Colo. in a conference call.
Executives pointed to the steel demands of the proposed Keystone XL pipeline as one boost to the industry.
“Hopefully the construction of the Keystone Pipeline will contribute to the growth trend in steel shipments in 2013 and 2014,” said Michael T. Rehwinkel, President and CEO of EVRAZ North America.
Rehwinkel cited the “tug of war” between the Environmental Protection Agency and Congress as a harmful delay. “This can undermine the goal of a secure and stable energy supply in our country,” he said.
Americas President Chuck Schmitt said the future of the steel industry is completely reliant on low-cost energy. “Our industry’s international competitiveness depends on the ability to capitalize on the discovery and development of North American shale resources,” Schmitt said.
Gas prices could mean “the real renaissance” of the industry, Rehwinkle said.
“You do the math on what the difference between a $12 or $13 natural gas world versus a $3 or $4 natural gas world,” said American Iron and Steel Institute President Thomas Gibson. “You just have to get the gas out of the ground… and that involves steel.”
Manufacturers stressed the importance of that steel industry revival to the success of the American job sector.
“We are a big jobs multiplier,” said John Ferriola, CEO and president of Nucor Corp. “Every one job supports seven additional jobs in the US economy” due to the ripple effect of manufacturing.
The U.S. steel industry directly employs 153,700 people, according to the American Iron and Steel Institute.