Jul 23, 2020
U.S. Steel Recovery to Mainly Rely On Enforcement of Trade Laws
2020-07-29
According to Dempsey, periods of sudden economic shocks, such as the one created by the pandemic, presents an opportunity for imports to surge.
SEATTLE (Scrap Monster): The strong enforcement of existing trade laws to rein in subsidized and unfair steel imports into the country is critical for the domestic steel industry to recover from the devastating impacts caused by Covid-19 pandemic, said Kevin Dempsey, interim CEO, the American Iron and Steel Institute (AISI).
According to Dempsey, periods of sudden economic shocks, such as the one created by the pandemic, presents an opportunity for imports to surge. He pointed out the Asian financial crisis in 1997, which had led to collapse of steel demand and sudden surge in exports to the U.S. Consequently, the U.S. administration was forced to implement Section 201 steel tariffs. A similar surge in steel imports was witnessed during the global financial crisis during 2008. The coronavirus crisis scenario should be considered as yet another inflection point for steel, he added.
The U.S. should be highly concerned about high level of steel production in China, the main source of subsidized steel imports. It is a relied for the domestic steel sector that the imports from China have not surged till date this year. The rising domestic demand in China resulted in 58% dip in Chinese steel exports in June this year. Meantime, the reports about inventory builds in China should be read with caution, Dempsey noted.
Source: Scrapmonster
