Trade Spat Continues with China, Steel Prices Show Strength

In the latest trade spat between the U.S. and China, U.S. regulators launched an investigation into complaints from United States Steel Corp. that Chinese competitors stole secrets and fixed prices.

U.S. Steel is seeking to halt nearly all imports from China’s largest steel producers and trading houses in its complaint.

The International Trade Commission (ITC) said in a statement that it has not made any decisions on the merits of the case. The commission identified 40 Chinese steel makers and distribution subsidiaries as respondents.

China continues to cause angst in the U.S. steel market. Imports to the U.S. have fallen by 50 percent from their peak in early 2015. Driving the decline was a combination of trade cases being filed and China reducing capacity.

In related news, spot prices for hot-rolled coil steel (HRC) increased again in May, rising to $615 a ton—the first time since December 2014 that the price passed $600. The futures market indicates conditions will support that higher price through June, because supply remains tight and demand stable.

Iron ore prices, however, fell from a peak of $70 in April to $55, which analysts characterize as a steep correction. Source: Reuters, Cargill Metals Monthly S