Report: High level of steel imports threatens profitability of U.S. firms

|By:, SA News Editor

Annual global steel oversupply is now running at more than $500M/year, twice as much as in 2001, according to a new U.S. steel industry-backed report.

The steel industry (SLX) is facing its "biggest import crisis since 2001," and high levels of imports are continuing and are a threat to the profitability of companies such as U.S. Steel (X) and AK Steel (AKS), the report says; in Q1, imports by U.S. companies rose 36% to 10.6M tons, a trend driven by excess capacity overseas and by a strong U.S. market due to the esurgent auto industry, and oil and gas drilling.

In response, U.S. producers are filing more trade complaints and seeking new import tariffs.