Steel Prices Sputtering: AISI to Address Unfair Trade

The US steel market is currently struggling to keep losses minimal and prices strong as the domestic car industries and energy industries continue to sputter in 2013.  As these industries are slowing with regards to demand, US steel companies are looking to leverage residential and commercial construction in the upcoming months in order to drive demand. As the market continues to cool off the AISI (American Iron and Steel Institute) has issued a letter to President Obama condemning the practices of Chinese Steel producers, of which 95% are state owned and operated.

Currently China provides these manufacturers with large subsidies, allowing them to take a competitive advantage in the export market, while they continue to decrease imports of foreign steel. As the demand for steel has declined world wide, this excessive capacity has seen more Chinese exports landing on US soil. AISI President Thomas Gibson has expressed concern, stating that in 2012 alone China had produced 200 million tons of excess steel, which was more than twice that of the US domestic producers at 95 million tons. With the tonnage of excess production only set to increase in China, AISI is attempting to have Obama address the fact that China must comply with it’s WTO commitments in order to protect the US Steel suppliers ability to compete in their domestic and global markets.

For more information please see: http://www.steel.org/en/sitecore/content/Steel_org/Document%20Types/News/2013/Steel%20Producers%20Group%20Urges%20Obama.aspx