Fighting Illegal Dumping Doesn't Help US Steel Producers

The US federal government has failed to stop the collapse in steel prices. "Anti-dumping sanctions don't work and in some cases are even detrimental," said Congressman Rick Nolan, who represents the Iron Range. The fall in oil prices has strengthened the US dollar overseas, making the prices of American products, including steel, less competitive than foreign products.

To tackle illegal dumping, the federal government requires companies to pay duties when they buy imported steel from countries that subsidize product prices. Sometimes, the fees for the purchase of metal products in severe cases can reach 100 percent of the purchase price.

For example, a company that buys $ 1 million worth of cheap steel products with a 100 percent duty must also pay $ 1 million to the US government. This raises the price of foreign steel to $ 2 million and makes it equal to the cost of American products that are not subsidized by the government. The Commerce Department is now trying to collect duties, but it doesn't help steelmakers much.



The US steel market was also negatively impacted by a significant drop in steel consumption in China, resulting in a collapse in steel prices, resulting in significant job losses in Minnesota and other steel-producing areas. In Minnesota, US Steel announced that it will partially suspend Mountain Iron operations by June, affecting 700 workers. The company also wants to suspend its Keewatin plant, where 412 more people will be affected.