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Leading Domestic Steel Producers Are Feeling Effects of Global Competition

Even the top domestic steel makers are not immune from a hurting industry. The second largest producer of domestic steel, U.S. Steel, is feeling the effects from global competition. Despite cost-cutting efforts, the Pittsburgh based producer has last a significant amount of money in this year’s previous two quarters.

The cause of the decline can be attributed to the strength of the U.S. dollar, reduced commodity prices and a decrease in global economic growth. Despite the current conditions of the U.S. steel market, it remains to be in much better shape than any of the other major steel industries throughout the world – the problem is cheap imports.

These imports come mostly from China and flood the American market – making it much harder for U.S. producers to sell their products. However recently China’s steel economy has been slowing down – leaving steel mills with massive overcapacity. This has led to the government funneling subsidiaries into China’s declining steel industry to prevent manufacturers from having to close doors and lay off employees.

Meanwhile, producers of steel in America have accused China of dumping low-cost steel in to the domestic market. The U.S. Trade Commission is set to rule of these accusations in the coming months and the imposition of punitive duties on steel from China will provide some relief to the U.S. market.

JD Fields Construction Group

JD Fields Construction Group

Prior to founding J D Fields & Company, Jerry Fields gained decades of experience in construction products and piling applications managing equipment rentals, material sales, and product operations. Coupled with his oil and gas experience, Jerry built a rock solid foundation of industry knowledge and relationships that allowed him and his partners to start the company in 1985. Incorporated in Houston, Texas, JDF quickly diversified into multiple construction markets and applications. Today, it is a premiere international source for natural gas pipe and piling products. Strategically positioned at the Port of Houston corridor, our flagship stocking facility has 40 acres of laydown area with steel processing and fabrication capabilities. We carry more than 50,000 tons of pipe and piling inventory throughout the states to serve North America, Canada, Mexico, the Caribbean and other international markets.

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