US hits record steel imports

Author: Paul Ploumis
22 Jan 2015 Last updated at 10:05:38 GMT
WASHINGTON (Scrap Monster):The imports to the country, is on the run to capture the highest quantity that the market share has ever acquired, stated Thomas Gibson, the President of American Iron and steel Institute.

When the year end numbers are done being tallied, the import of finished steel products should obtain 28 percent of the whole market share, stated Gibson. This will exceed the previous highest record, which was noted to be 26 percent in both 1998 and 2006. He stated that, the cause of the high amount of steel is that a very large amount of overcapacity is present in the steel industry, especially in the economies of Asia. According to the estimates, the World overcapacity of steel is noted to be 628 million tonnes, and this is an irrational overcapacity.

China as well as other foreign Countries, will continue to build new steel mills in order to create job opportunities, making steel which is over their domestic demand and they plan to sell it overseas. The steel makers sell their heavily subsidized steel sometimes at a loss. In the United states, they do not provide subsidies for the steel makers, which will be shown as an attractive dumping ground for its size and also the free trade policies.