By Maggie StoleganThe price of steel is dropping, thanks to a steady influx of cheap Chinese imports.
It’s a bit like a tidal wave that’s been building for decades, and steelmakers are bracing for it to pick up speed.
Weeks ago, a new steelmaking factory opened in the heart of the city, where steel producers make their products.
Now, steel prices are at their lowest point in more than two decades.
“We’ve been importing steel for years, but in the last two or three years, there has been a huge surge in steel prices,” says Penny Smith, head of research at Steel Industry Association.
“Now we are seeing the price of this material drop even further.”
The price drop is largely driven by Chinese imports, as Chinese factories have made up a larger share of the steel industry in the United States than ever before.
According to the U.S. Steel Association, Chinese imports from China were $4.3 billion in 2016, a 30 percent increase over the previous year.
That’s up from just $2.9 billion in 2015.
The rise in Chinese imports is also part of a broader trend, as steelmaking capacity has expanded by 60 percent since 2011, according to the National Steel Association.
“I think there is a lot of people who don’t know that we have more capacity in America than we did two years ago, and I think that has been the reason why we have been able to bring down the cost of steel,” says Steve Miller, CEO of the Pittsburgh-based Steel Dynamics.
Miller also sees a big future for steelmaking in the U: “The Chinese are going to come back and have a large impact on steel manufacturing in the US,” he says.
A wave of cheap steel isn’t the only thing that’s driving down steel prices. “
The other thing that is really happening right now is that the Chinese are buying steel from other countries, which means that we’re going up in the price.”
A wave of cheap steel isn’t the only thing that’s driving down steel prices.
A new wave of Chinese imports has also been helping to drive down steel’s price.
In recent years, the Chinese government has pushed to import more steel from countries like China and other Asian nations to boost domestic production.
China’s new steel import policies are now driving down prices for steelmakers, which have struggled to keep up.
Smith points to a number of factors, including an increase in the amount of steel produced by the Uyghur minority in Xinjiang, where the region is located. “
If you go back and look at the price history, it’s been the same,” Smith says.
Smith points to a number of factors, including an increase in the amount of steel produced by the Uyghur minority in Xinjiang, where the region is located.
The Uyighur are Muslim immigrants from the northwest of China who were forcibly displaced by the government of the late Soviet leader, Josef Stalin, in the early 1950s.
In the last decade, the Uygur population has increased from around 10 million to about 20 million, and their economic and political power has been increasing.
Now they have an interest in getting more steel.
Last year, China’s government launched a nationwide “Made in China” program to import steel for construction projects.
The goal of this program is to help the Ugyur build up their steel industry.
This is the same program that is responsible for the current price drop in steel.
In the past, the government would import steel from the United Kingdom, Canada and other countries to help them build their steel production capacity.
However, the new Chinese import policy is forcing steelmakers to import even more steel to meet the government’s needs.
According the International Trade Commission, the cost for steel imports dropped from $3.6 billion in 2008 to just $1.9 million in 2016.
That is an increase of more than 70 percent, according the ITC.
While the government has tried to increase the number of steel plants that are produced in the country, it has not been able, so most of the new production is in Uyggurstan.
For a time, the ITP had been encouraging steelmakers in Uygursk, Uyqeq and other regions to start manufacturing in China.
In 2016, the IIT warned that there was a “high risk” that steel producers in Xinjing, Urumqi and Urumli provinces would be forced to import raw steel.
Since then, China has increased the number and size of steelworks in Xinzig, Uryggi, Uyer and Uygyi, and the IITP is also warning that the government is likely to increase its import of steel to keep pace with the influx of Chinese steel.