Wire Line
December 2001/January 2002  VOL. 13, NO. 6 
Meetings & Membership News

Spool Image by Emily Bardach, Director of Meetings & Membership

The Desert Attracts Many

There was no doubt in the minds of the AWPA members that when they left Tucson, AZ this past February, they would be back again. The desert brought sunny days for meetings and tournaments and cool nights for entertaining customers and line dancing at the Western Rodeo Round-up.

Over 200 members, potential members, spouses and guests joined us this year for industry meetings and social gatherings. While spouse attendance was down from previous years, member attendance was high - a reflection of the importance of the issues at hand, even in a tight economy. In fact, overall representation from member companies was at it highest level ever.

Attendees were able to participate in committee meetings with many important topics to discuss, including monitoring imports from China of wire and wire products, and the results of this year's Steel Section 201 activities.

New Committee Chairs were appointed. Milton Magnus, President of M&B Metal Products Company took over the Garment Hanger Committee; Tim Selhorst, Executive President and COO of American Spring Wire Corporation assumed the helm of the newly created PC Strand Committee; Joe Downes, President of Leggett & Platt Wire Group, will lead the Government Relations Advisory Committee (GRAC); David Libla, President of Mid Continent Nail Corporation, will serve as the Chair of the Nail Committee; and Chris Whiting, Marketing Manager of CHC Industries, will take over the Membership Committee.

AWPA also welcomed new Officers. Serving as the new AWPA President is H Woltz, III, President and CEO of Insteel Industries; with new Vice Presidents Bob Moffitt, Vice President of Purchasing for Davis Wire Corporation and Joe Downes. Cheryl Coelho, Vice President, Product Management for ECD, Inc. takes over as the new Treasurer.

Newly elected Board members are: Milton Magnus, B.L. Moore, Chairman of Oklahoma Steel & Wire; Michael McCall, Vice President of MMI Products, Inc.; Curt Livermore, President & CEO of Laidlaw Corporation; John Johnson, Jr., Vice President of Mid-South Wire Company; David Libla; Tim Selhorst; Kim Stropes, President of Threaded Rod Company; and Bill Groom, Director, Rod, Bar and Seamless Sales for Rocky Mountain Steel Mills (Associate Rod Supplier Representative).

Participants received briefings from a distinguished group of speakers. Stephen Claeys, Chief of Staff to the Assistant Secretary of Commerce for Import Administration (Faryar Shirzad) updated the members on many important topics including the multilateral steel negotiations and the Steel Section 201 investigation. He began by complimenting AWPA and its members on its proactive work in Washington, DC meeting with Administration officials and Congressional legislators, and urged us to continue these activities.

Stephen then outlined the Administration's three-point agenda with respect to the multilateral steel negotiations:

1. Work to remedy trade distorting practices used by our trading partners to avoid unfair trade policies (i.e., subsidization, unsound bank lending practices, import barriers)

2. Make improvements in transparency in trade remedy laws. He noted that US exporters are facing over 60 cases against their products right now.

3. Adopt a dispute settlement system that is transparent and fair.

With respect to the Section 201 investigation, he stated that the president's primary goal was to set in motion a system to allow the steel industry to restructure. It was not to serve as permanent relief from imports.

He concluded by advising the audience that regardless of the outcome of the Section 201 investigation, the Administration will continue to pursue multi-lateral talks to address the steel overcapacity problem (see related story), and negotiations to end market-distorting practices. Claeys urged wire producers to contact him if they had recommendations to alleviate the excess capacity problem. The next meeting for the multilateral negotiations is scheduled for April.

Susan Dyszel, International Trade Officer from The Chicago Strategic Trade Center, discussed the recent changes made by President Bush to the Tariff Rate Quota (TRQ) Program covering imports of carbon steel wire rod. The Center has the responsibility of tracking and reporting the imports of steel wire rod and line pipe covered by the TRQ programs.

For the third quota year, beginning March 1, 2002, the total quota will be 1,291,259,302 kg to be split equally among the four quarters of the program year. These quarterly levels are further broken out into four regions/countries as follows, with no carryovers from quarter to quarter, or region to region:

European Union - 104,987,486 kg

Trinidad and Tobago - 61,716,789 kg

CIS states - 47,034,377 kg

All other countries - 159,076,170 kg

Susan advised the attendees to go to the Customs website's (www.customs.treas.gov) Electronic Bulletin Board section for more detailed information on instructions for labeling and processing these products.

During the second day of presentations, economist Dr. Gary Schilling gave his views on the state of the economy. Specifically with respect to steel, the noted economist made some interesting remarks. His conclusion is that the industry obviously has big problems, but has undergone no real technological innovations in decades. He added that the answer of constant protectionism to help them has not worked in the past, and will not work in the future. "Protectionism keeps inefficient capacity in business," Dr. Schilling concluded.

Rounding out the program, and back by popular demand, were rod mill presentations. This year the featured mills were Lucchini USA Inc and Charter Steel. Marco Talluri, from Lucchini discussed his company, which is the leading Italian manufacturer of quality long products, with an output of 5 million tons per year. Mike Beauregard presented the Charter Steel story. This company is a family-owned and financially sound company that also includes Charter Specialty Steel. The company recently completed a $186 million expansion project.

The AWPA Sports Day brought everyone out to the course and the courts for a day of competition and fun. We would like to congratulate the following individuals for their athleticism and maybe a little bit of luck...

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American Wire Producers Association
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Alexandria, VA 22314-1757
Tel (703) 299-4434 | Fax (703) 299-9233 | E-mail info@awpa.org | Web: www.awpa.org