But what this also shows is that the U.S. steel producers have now built a strong case against the imports and will likely file a complaint with the International Trade Commission, perhaps as early as next month.
The industry also may have figured out a way to prove that the foreigners are dumping steel in the U.S., which is why the heads of Nucor, U.S. Steel and ArcelorMittal (NYSE:MT) USA as well as the members of the members of the American Iron and Steel Institute (AISI) will be heading to Capitol Hill on Thursday to testify at the Congressional Steel Caucus hearing.
Since the industry has largely pointed fingers at China, the trade case will likely target steel originating from the country. Steel production from China alone matches the total production from the rest of the world. But over the years, the country's growth has slowed down, which hit the demand for steel. China's steel consumption increased by just 1% in 2014 and is expected to climb by 0.8% in 2015. The steel producers, on the other hand, who benefit from support from the Chinese government as well as the cheap iron-ore prices, haven't slowed down. As a result, the country has been exporting the excess supply to all corners of the world. In January, China's steel exports climbed by 63% year-over-year to 9.2 million tons. If the country continues to export at this level throughout the year, then it will easily beat last year's export record by 28.3 million tons.
It is worth mentioning here that although the data from AISI as well as the Census Bureau shows that China is not one of the top three exporters of steel to the U.S, this statistic can be a bit misleading. That's because a lot of steel that comes into the U.S. from places such as South Korea, which is the top exporter of HRC steel to the U.S., is usually slightly processed or in intermediary form and originates from China.