A new bill aimed at constructing new steel mills in American industrial cities and expanding policy support has drawn attention from both the U.S. steel industry and the political sphere.
Recently, Rep. Ro Khanna, a Democrat in the U.S. House of Representatives, introduced the 'Modern Steel Act,' a bill designed to revitalize the U.S. steel industry.
The 'Modern Steel Act' is a groundbreaking initiative to build new steel mills in cities where the industry has declined, bring next-generation steel production back to the U.S., strengthen domestic production, create high-paying jobs, maintain existing ones, and enhance America's industrial competitiveness globally.
Rep. Khanna introduced the bill in Johnstown, Pennsylvania, a city that once held a significant position in the U.S. steel industry but has suffered due to its decline.
Regarding the bill, Kevin Dempsey, President and CEO of the American Iron and Steel Institute (AISI), stated, "The U.S. steel industry is a global leader in clean steel production, but we still have a long way to go to achieve carbon neutrality. We are pleased to support a bill that encourages continued and increased investment in groundbreaking technologies such as hydrogen-based steelmaking and electrolysis, enables ongoing innovation in the U.S. steel industry, and provides tax incentives to create jobs through strong public-private partnerships."
The bill is also supported by the United Steelworkers (USW), steel producers like Cleveland-Cliffs, and several industry groups.
Notably, the 'Modern Steel Act' aims to collaborate with the steel industry and workers to build new modern facilities that utilize cutting-edge green technologies, such as hydrogen-based and electrolysis-based steelmaking, to produce carbon-neutral steel. The bill includes provisions for a $10 billion cost-sharing grant, low-interest loans, and other financial support, as well as the modernization of existing blast furnaces, electric arc furnaces, and small plants to produce low-carbon steel.
With the introduction of the 'Modern Steel Act,' there is growing speculation that the U.S. government will not only increase its support for the steel industry but also tighten import regulations.
In early July, the U.S. House introduced the 'Prove It Act,' a bill that provides reliable, objective, and verifiable emission intensity and transparency for the steel industry. The American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA) strongly supported this bill.
Additionally, seven industry groups, including SMA, have called for the inclusion of the 'Leveling the Playing Field 2.0 Act,' a legislative package designed to protect U.S. industries from unfair trade practices by China, in addition to existing Section 232 tariffs and circumvention import regulations.
Industry experts in the U.S. steel market expect that with the upcoming presidential election this year, bills like the 'Modern Steel Act,' the 'Prove It Act,' and the 'Leveling the Playing Field 2.0 Act' could all pass Congress in the second half of the year.
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