US Steel Industry Protection Measures are Increasing
The concept of imposing a 25 percent tariff on steel imports
into the United States appears to be a good way to protect the local steel
industry. Unfortunately, this action has generated unintended consequences for
consumers. Domestic steel prices have increased significantly, since the start
of the year. US steel producers are taking advantage of the reduced import
threat by increasing their selling values to consumers and service centres.
Local manufacturers in steel intensive industries have, already, seen their
input costs rise significantly.
MEPS calculates that the cost of steel supplied to autobody parts makers, in
North America, increased by 22 percent during the first five months of the year.
The figure for the construction industry is even greater, at 25 percent.
Companies providing household appliances report a similar increase. The
situation is even more dramatic for US companies which utilise large quantities
of steel in their manufacturing processes. These include shipbuilders and
suppliers of shipping containers, which have been subject to steel price
increases of 43 and 36 percent respectively, so far this year.
MEPS - International
Steel Review - May 2018 Edition
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