Final Thoughts

In a press release yesterday, the agency noted EPA Administrator Lee Zeldin last week announced 31 actions in what was called “the most consequential and momentous day of deregulation in US history.”

Quoting from an op-ed by Zeldin submitted to the Wall Street Journal, the release said:

“By overhauling massive rules on the endangerment finding, the social cost of carbon and similar issues, we are driving a dagger through the heart of climate-change religion and ushering in America’s Golden Age. These actions will roll back trillions of dollars in regulatory costs and hidden taxes.”

As previously reported, SMU highlighted a stricter standard on particulate matter (PM2.5) that could have a wide-ranging impact on steelmaking, which has now been reconsidered. You can find more info on the EPA’s actions here.

The Steel Manufacturers Association (SMA) and the American Iron and Steel Institute (AIS) applauded the EPA’s actions. They weighed on whether this was a new course for the agency and if it could benefit steel.

SMA

SMA President Philip K. Bell told SMU on Tuesday, “There’s no question that regulatory overreach is harming the economy and has been a problem for manufacturers in the United States, including steelmakers and their customers.”

Bell noted that “we expect common-sense changes to environmental regulation to stimulate growth in the steel industry.”

In a statement last week, Bell said “Administrator Zeldin has put EPA on a path to create a lasting PM2.5 standard that will continue to protect human health, but will also allow our economy to grow and manufacturers to continue to create good-paying jobs.”

AISI

Kevin Dempsey, president and CEO of AISI, was also upbeat on the emphasis on prioritizing US manufacturing.

“A significant goal of the Trump administration EPA is to reignite American manufacturing, including the steel industry, while continuing to protect human health and the environment,” he told SMU on Tuesday.  

He also pointed out that the agency is more sensitive to industry’s needs.

“EPA has listened to us,” he said. “By reassessing numerous burdensome mandates that were a disincentive to economic growth and investment, EPA is focused on creating jobs and economic prosperity rather than overregulation and bureaucracy.”

While he also commented on the PM2.5 standard in a statement last week, Dempsey highlighted other issues as well: “AISI strongly supports EPA’s reconsideration of emission limits on integrated facilities, taconite ore processors, and coke plants.”

He said onerous policies by the previous administration would have adversely impacted “nearly every step and aspect of the integrated steelmaking process.”

How green is our industry?

The title of Zeldin’s WSJ op-ed was “EPA ends the ‘Green New Deal.’” So where does that put steel now?

The US industry is already the cleanest in the world. Will easing regulation be like taking the governor off an engine? Will it stimulate downstream, steel-intensive industries like auto, thus boosting the demand for steel?

On the flip-side, could the seeming new direction of the EPA thwart customers’ demand for “green steel,” as they detect a shifting of the winds?

Speaking of wind, the enthusiasm for wind energy (plate intensive) has stalled as of late. Likewise, the demand for electric cars. How soon until they rebound? Or are more innovations (and perhaps different regulations) needed?

As with tariffs (I almost went a whole article without saying the word), we are seeing how crucial government policies can be in influencing the market. What’s next coming down the pike?

Note: To keep up with all the fast-paced news, we are adding “Inside this issue” to the top of the newsletter. There you can get an appetizer of the day’s news.  Hope you enjoy it, and thanks for all your support!