AISI Chief Presses on the Need to Preserve U.S. Steel Tariffs

SEATTLE (Scrap Monster): Kevin Dempsey, Interim President and CEO, American Iron and Steel Institute (AISI) highlighted the importance of preserving the U.S. steel tariffs.

According to him, the American steel is the most energy-efficient and cleanest steel in the world. The steel industry capacity utilization rates have been at sustainably lowest levels for almost the whole of the past decade, since the great recession in 2009.

In 2018, the administration had introduced tariffs on steel imports into the country, with the aim of safeguarding domestic steel industry. This helped the American industry to increase steel production. Consequently, capacity utilization rates have recovered. The tariffs also resulted in lower import market penetration.

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As per several reports, tariffs on foreign steel have saved large number of U.S. jobs. Also, several steelmakers have restarted closed mills or have announced their decision to invest billions of dollars in modernization of existing mills or building new mills.

However, the COVID-19 pandemic has badly hit the industry, with domestic steel industry production plunging to low levels, as a result of pandemic-induced lockdowns and restricted production schedules. As per estimates, nearly 8,600 steel workers have reportedly lost their jobs. Without tariffs, the situation would have been even worse, he said.

Meantime, Dempsey noted that China set new levels of production, while most of the steel producers across the world had to reduce production in response to demand declines. The Asian country is believed to be maintaining huge levels of steel inventories, ready to flood the market.