The United States steel industry could be taking a hit due to manufacturers in foreign countries selling steel pipes at unusually low prices. In fact, countries like India, Saudi Arabia, Thailand and 6 others have been selling pipes at such low prices that a new probe has been opened to investigate the matter. Led by the U.S. Commerce Department, this probe will evaluate whether or not these countries are violating fair-trade laws and other agreements.
With the return of several oil and gas production operations in the U.S., the demand for steel piping has been on a steady rise across the country. Despite this rise in demand, these foreign countries are making it difficult for some companies to receive fair prices for steel piping. The imports from countries like the Ukraine and Turkey are priced so low that businesses are choosing to buy from them instead of purchasing products made on American soil.
While the results of this probe have yet to be determined, it is essential that American made products receive the same shot at success as products made around the world. If these countries are manipulating trade agreements, something must be done in order to regulate the prices of steel piping and similar products.
*Image courtesy of Feng Yu