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Wire & Cable ASIA – January/February 2011
30
From the
americas
Alberto Cabrera, the director of cargo sales and marketing for
the Jacksonville Port Authority, offered two reasons for the
burgeoning demand for steel scrap from the United States:
infrastructure investment by South American countries,
and China’s shutdown of many steel mills that did not meet
carbon-dioxide emission standards.
According to the Institute of Scrap Recycling Industries Inc,
a Washington-based trade association, China accounted for
about a third of American steel scrap exports, with Canada,
South Korea and Turkey the other major takers. The $54 billion
domestic recycling industry employed about 105,000 people
in 2009, according to the institute. As noted by Mr Szakonyi
of the
Journal
, the “anecdotal evidence” of a developing hub
in northeast Florida includes a dozen known recyclers and
a new marine terminal in Talleyrand to handle steel scrap.
(“Jacksonville Scrap Steel Creates Export Opportunity,”
8
th
October)
Elsewhere in steel . . .
Craig Bouchard, who gained a reputation for acumen by
❖
❖
getting out of the steel business just before the global
recession sapped demand, is getting back
in. Mr Bouchard, with his brother James,
sold the steel assets of their company
Esmark Inc (Chicago) to Russia’s OAO
Severstal for $775 million in August 2008.
Now, perceiving that weak steel demand
and restricted access to credit represent
an opportunity, he is founding a company
to acquire steel producers and distributors.
“The steel market has no legs right now.
Customer demand is not there,” Craig
Bouchard told
BloombergNews
(1
st
October).
“It creates incredible valuation opportunities
if you believe the world is going to start
recovering next year [2011]. And I believe
the world is going to start recovering next
year. Therefore I’m a buyer.”
Shale-Inland LLC will seek acquisitions
in $20 million to $100 million range, said
Mr Bouchard, who will serve the Chicago-
based start-up as chief executive officer.
Trade
In a green-tinged issue
with China, the United
Steelworkers union finds a
receptive ear close to the
President
US Trade Representative Ron Kirk said
(15
th
October) that he would investigate
claims by the United Steelworkers (USW)
union that China is violating trade laws
through massive subsidies of its clean
energy industry.
He holds a Cabinet-level position and serves
as President Barack Obama’s principal
trade advisor, negotiator and spokesperson
on trade issues.
Mr Kirk announced his decision a month
after the 850,000-member union asked
Washington to pursue a trade case based
on what USW officials called “protectionist
and predatory practices” by which China
threatens US jobs and manufacturing.