Over the past few months, we have closely followed developments in the international steel market here on the Florida Pipe & Steel blog. The dumping of cheap steel in American markets has been a problem for steel manufacturers in the U.S., but actions by the federal government to set tariffs on countries engaged in dumping steel will do a great deal to build a much healthier domestic economy for steel.
Already, the response by Wall Street is showing us that bright financial days will be coming to American steel manufacturers. As this article published by Investors.com discusses, shares of some major steel producers operating within the United States have climbed just as the U.S. International Trade Commission has voted to place anti-dumping tariffs on seven countries.
Steel dumping, in which producers in one country are able to sell steel for less than it cost to produce because of high subsidies from their national governments, truly hampered American steel production at a time when the industry could have greatly increased production. Shale oil fracking operations created a huge need for oil & gas pipes, but much of this demand was satisfied through cheap steel from Taiwan, Saudi Arabia, South Korea and more.
Back in May of this year, official predictions from the Economic Policy Institute indicated that more than 500,000 American jobs were at risk because of these steel dumping operations. Sales for U.S. Steel were still slumping, but shares have increased to almost $38 per share, much higher than Wall Street projections. Shares of AK Steel have exploded, increasing by 34 percent since the beginning of July.
This impressive turnaround for American steel manufacturers has given us plenty to be optimistic here at Florida Pipe & Steel. If you need tubular steel goods for your construction project, you cannot beat the quality of steel products available through our company.