Business

Steelmakers look to energy industry for growth

The North American steel industry is continuing its push to serve the energy sector as companies are finding market opportunities with the development of the Marcellus Shale and other exploration efforts.

Steel company executives said at a press briefing Monday the federal government should support the development of domestic natural gas resources and an avoid implementing rules that could have a negative impact on job creation. The briefing was at the American Iron and Steel Institute annual meeting in Colorado Springs, Colo. The Washington, D.C.-based trade group’s members represent 80 percent of U.S. and North American steel capacity.

“This whole situation of natural gas is a game changer,” said Dan DiMicco, CEO of Nucor Corp. and AISI chairman. “It’s a game changer not only for the steel industry but for the entire (manufacturing sector).”

Mario Longhi, president and CEO of Gerdau Ameristeel Corp. and AISI director, said natural gas extraction and transportation and clean coal, wind and solar power generation systems are expected to be a strong source of steel demand through the next decade.

Longhi also said the domestic industry could benefit from continued federal incentives for industry efficiency and energy reduction projects.

He said the United States is lagging behind other countries in terms of spurring research, which would be an important part of any national energy policy.