The Steel Manufacturers Association (SMA) has warned that access to affordable and reliable electricity is critical to the competitiveness and continued growth of the US steel industry, according to its testimony at a recent US congressional hearing on energy regulation.
The SMA stated that its member companies generate $149.4 billion in annual economic impact and employ more than 87,000 workers nationwide, while collectively investing around $25 billion to modernize and expand steelmaking facilities across the US.
Electricity costs central to EAF steelmaking
The association emphasized that the growing reliance on electric arc furnace (EAF) production makes electricity one of the industry’s largest cost components. An EAF steel mill typically requires 40–200 MW of power, making price volatility and supply reliability a direct risk to operations.
Call for faster power infrastructure development
The SMA urged policymakers to accelerate power generation and transmission projects to meet rising industrial demand, particularly as electricity consumption increases from data centers and advanced manufacturing. It also called on the Federal Energy Regulatory Commission (FERC) to ensure industrial users maintain access to competitively priced, reliable electricity, warning that reshoring efforts depend heavily on stable energy policy and streamlined permitting.
VietnamSteel by Hoa Sen Group
