China unloading steel in the U.S. as its domestic market falters
As we reported yesterday, China is exporting more and more product to the U.S. in an effort to prop up its sagging economy.
And, as the Wall Street Journal is reporting, Chinese steel exports are beginning to surge into the U.S. again.
Complicating matters is the fact that China' steel industry is heavily subsidized, and also benefits from a deliberately undervalued currency.
The Wall Street Journal reports that China's steel exports have "resumed climbing in recent months" and last month they "surged to their highest level since June 2010 to reach 5.23 million metric tons."
This doesn't bode well for the U.S. steel industry:
"The West is increasingly at risk from Chinese overproduction as steelmakers continue to cut export prices in an attempt to use the export market as a 'supply relief valve' to reduce pricing pressure at home," Chicago-based Steel Market Intelligence said Tuesday.
Hopefully, Washington will remain vigilant against the potential for dumped Chinese steel.
Last month, the U.S. International Trade Commission (ITC) imposed duties on high-pressure steel cylinders from China, after exports surged to $81.7 million last year from $49 million in 2010. The U.S. Commerce Department has announced plans to impose antidumping duties of up to 31.21% on the cylinders.
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