Market: Metals and metal products
13 April 2016
In 2014, that global steel production overcapacity was more than 700 million tons, reported United Steel Workers. According to the American Iron and Steel Institute the majority of that amount – 425 million tons – is specifically Chinese overcapacity.In assessing the state of both the American and the global steel industries, it is important to understand that production and capacity are linked, and that massive overcapacity of the sort that exists today drives overproduction, which in turn unfairly and artificially puts pressure on both American and other foreign steel companies, with increasingly disastrous results, said USW. The American steel industry is one of the most efficient in the world, often producing a ton of finished steel in under one man-hour. But even with this world-class performance, plants are closing in the United States as a direct result of this overcapacity and the overproduction that comes with it, at the cost of thousands of American steelmaking jobs.