Essar Steel Algoma

Sault MP Terry Sheehan says he's hoping Canadian steel producers will see some progress made soon that will offer them some relief to the issues that face them.

Sheehan is co-chairing an all party Parliamentary steel caucus with Hamilton East-Stoney Creek MP Bob Bratina.

The committee had its inaugural meeting last week and included the Canadian Steel Producers Association and steelmakers including Essar Steel Algoma, U.S. Steel, ArcelorMittal Dofasco, Evraz and Tenaris Tubes.

Essar Steel Algoma and U.S. Steel, based in Hamilton, Ont., are both in creditor protection and undergoing restructuring plans.

“There were some great discussions about the steel industry today and what it means to Canada, the economy and impact it has on both direct and indirect jobs,” Sheehan told The Sault Star in a telephone interview from Ottawa.

The Canadian Steel Producers Association highlighted the industry's presence in Canadian communities and its role in the auto, infrastructure and energy supply chains sectors.

It also reiterated the CSPA's proposals for trade remedy modernization and the importance of the ongoing enforcement of non-market economy provisions as it relates to China.

“The Canadian Steel Producers Association is very pleased to see their issues in black and white in the recent budget,” Sheehan said. “They weren't too sure it was going to happen that quickly. After all, the system hasn't been modernized in 30 years and over the past 10 years, they got nothing from other steel caucuses.”

Sheehan said the all-party steel caucus, which will meet monthly, will begin to develop a strategy designed to elevate the issues and industry concerns.

“I was pleased to see another member talk last week in the House of Commons about the importance of steel to the Canadian economy. That's the type of thing we need to do and continue doing,” he said.

Sheehan said he believes this is an industry that needs all parties working together “and trying to score political points right now doesn't help the industry at all.”

The CSPA trade modernization plan includes measures to provide for increased transparency to provide quality control for import data, strengthening CBSA procedures and methodologies to better scrutinize values of imports, improve CITT operations when it comes to injury findings/duty determination and allow for stronger CBSA enforcement of anti-dumping orders and establish trade remedy circumvention as a priority, among other things.

Sheehan said that the implementation of the recommendations vary from short to long term.

“Some of these recommendations can be implemented quicker than others and some need stakeholder engagement and analysis,” he said. “I will continue to work on that and provide my voice as well.”

Sheehan also believes that there will be opportunities for the steel industry with the federal government's infrastructure funding program and he envisions a greater use of domestic steel to advance those projects.

Sault Ste. Marie Economic Development Corp. CEO Tom Dodds said developing an all-party steel caucus is a good one, which increases national attention around the issue.

“Nationally, steel is vulnerable and it's a strategic sector and supply we need in Canada,” he said.

Dodds said he anticipates that the steel caucus will have to hear from the steel mills to determine what they need to modernize their mills and make their products more competitive.

China's mass production of steel has resulted in an over capacity in the industry, a move that shifted as a result of the economic decline.

“They created this crisis with the (steel) dumping,” Dodds said. “Prices need to continue to come up to help our own markets.”

The caucus itself is helpful to the industry because it examines the issues from a holistic approach and develop a concensus on what needs to be done and that caucus will influence both the Ontario caucus and the national caucus, he said.

“The challenge for Canada is that China is a growing economic force and Canada needs to come to grips with its steel policy and what it can do for that industry,” Dodds said.