Russia’s Steel Industry Booms Under Sanctions

By Taylor Garland
Jun 17 2015 |
Photo via U.S. Steel

Steel imports from Russia are flooding the U.S. market.

Domestic steelmakers have pushed for stronger trade enforcement measures during the current trade debate in Washington. And there have been bipartisan efforts in both the Senate and House of Representatives to make it easier for American workers and businesses to seek remedy against trade cheating.

But thousands of American workers have already faced layoffs this year — and more than 150,000 are at-risk — because of a surge in dubiously priced imports from foreign countries like China and Russia.

Unlike its U.S. counterpart, Russia — a country under stiff economic sanctions for lots of reasons — has a thriving steel industry. The New York Times reports:  

Russia now smelts about 75 million tons of low-cost steel a year, of which 30 million tons are exported. On a recent day at Severstal, all the production lines hummed with activity. Managers say the factory operates at about 97 percent of capacity.

In fact, steel imports increased by 38 percent in 2014, according to the U.S. Census Bureau. And aready this year, there has been a 11.45 percent increase in U.S. steel imports from the same period in 2014. Imports from Russia have simply exploded.

Source: American Iron and Steel Institute, U.S. Census Bureau

The domestic steel industry can compete with anybody and win, provided the playing field is level. But it’s simply not these days. U.S. steelmakers must fight for fairness at the International Trade Commission by filing a trade case. And even when a trade case is won – the damage has already been done, and jobs have already been lost.

Presidents and lawmakers must aggressively defend this vital domestic industry that competes on an international stage.