Thanks to a new import tariff, steel companies around the U.S. are flourishing.
The new regulations are designed to punish companies for unlawful dumping, unfair price reductions, and/or selling cheap steel to join in on the U.S. market share.
According to Crain’s Detroit Business, the U.S. Department of Commerce passed the regulations for U.S. imports and imposed the same responsibilities to seven other countries, including China, which received the largest set of regulations.
“China has been overproducing steel for years,” said Kevin Dempsey, senior vice president of public policy and general counsel for the American Iron and Steel Institute. “Way too much for their own market and even the global market. They run steel mills to maintain employment and are subsidized by their government.”
The steel industry has come a long way over the years. Now, steel parts are up to 30% stronger than they were a few years ago and are much more dent resistant as a result. It’s also become increasingly easier to mass produce steel, and in China’s case, overproduce.
The World Steel Association reports that by the end of 2014, China’s steel production increased from 200 million metric tons to more than 900 million metric tons, which was equivalent to half of the entire global supply at that time. Because of the overproduction and cheap gas prices, importing steel was cheaper than it’d been in decades.
“It was the perfect storm,” said Michael Barnett, vice president of Grand Steel.
Grand Rapids’ steel producer, Mill Steel Co., which is one of the U.S.’s largest steel distributors, has been in the news recently as well.
PR Newswire reports that Marc Rabitoy has been announced as the new chief financial officer for Mill Steel.
“Marc was highly recommended from several of Mill Steel’s trusted business partners and we are very excited to have him join us,” said David Shamrock, CEO and Chairman of Mill Steel. “I’m certain he will complement our leadership team and transition seamlessly into our people first culture.”