Kevin Dempsey, who has taken over as the interim chief executive of the U.S. trade group, the American Iron and Steel Institute (AISI), stated that the steel industry continues to be grappled with the economic downturn caused by Covid-19 pandemic. He highlighted the main issues faced by the domestic U.S. steel industry.

According to him, the industry is still faced with the challenge of global capacity and restrictive actions by various governments across the world. Also, the sector continues to be troubled by fall in demand post Covid-19 pandemic crisis. The competition from alternative materials too have impacted the industry, which could be overcome by developing new and better grades of steel products.

The recently implemented trade agreement, the US-Mexico-Canada Agreement (USMCA) is expected to provide significant boost to the region’s supply chains and improve steel flow to North American automotive manufacturing sector.

The import market share of steel has been on the higher side for a long number of years. The market share of imports has declined from 21% in 2019 to 18% so far this year. The dumped and subsidized steel imports, especially from China, continue to hamper world markets, U.S. markets are not an exception either, he added.

The steel sector recovery in the country is dependent on broader economic revival, Dempsey said.