Steel companies seek level field of global competition

October 11, 2014 at 4:33p.m.

YOUNGSTOWN

Competition in the steel industry is intense, which is why there are always issues when someone attempts to gain an advantage.

Over the past few years there have been allegations of steel dumping against China and now South Korea for selling the product at prices as low or lower than the material costs, due to subsidies from foreign governments.

Sen. Sherrod Brown, D-Ohio, is among those leading the attempts to have tariffs placed against countries that dump steel into the U.S.

The effort started because companies and unions in the Valley were talking about the issues in the industry, he said.

“Our companies can compete when there is a level playing field,” Brown said.

The issue with the steel pipe for the oil and gas industry that is being considered now has directly had an impact on local jobs, he said.

“When other countries cheat it costs us jobs, and when the market is fair we grow jobs,” Brown said.

Not everyone agrees with Brown that any type of tariffs against South Korean steel producers will have a long-term positive impact on the steel industry.

These attempts against steel dumping might provide domestic steel producers a bump in the short term, said A.J. Sumell, professor of economics at Youngstown State University.

“I don’t think it’s a viable long-term strategy,” he said.