![]() ![]() Consequently, the import share of the domestic market increased 4.5 percentage points in January–February 2014 (an increase of 18.5 percent over the same period in 2013). Domestic shipments declined 0.9 percent over the same period. steel imports surged even more sharply in the first two months of 2014, hitting 6.4 million net tons, an increase of 24.5 percent over the same period in 2013. market and thwarting the domestic industry’s efforts to recover from the Great Recession. Imports have increased not only in absolute terms, but also relative to domestic production and consumption, seizing more of the U.S. steel imports increased from 28.5 million net tons in 2011 to 32.0 million net tons in 2013, an increase of 12.3 percent. The glut of exports from global excess steel supply is targeted in particular at the U.S.High fixed costs, capital intensity, and the large scale of steelmaking encourages state-backed producers with excess capacity to maintain production in excess of domestic demand, and export the surplus at below-market rates. ![]() ![]() Excess capacity means that steel production facilities have the capacity to produce much more steel than the market demands.With more additions planned overseas and a continued slow recovery in demand, the excess capacity problem is not projected to be resolved any time soon. While China accounts for more than a third of global excess capacity, there is also significant overcapacity in South Korea, India, and elsewhere. Global excess steel capacity is now over half a billion metric tons, more than twice the volume of excess capacity in the last steel import crisis that followed the Asian financial crisis more than a decade ago.steel imports have surged and import unit values have plummeted. market became the prime target for the massive excess supply stemming from this excess capacity, and, since 2011, U.S. In the aftermath of the Great Recession, steelmakers in other countries, backed by aggressive government support, continued to add production capacity as demand stagnated. steel industry is facing its worst import crisis in more than a decade. ![]()
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