Dec 3, 2015 Off Comments in Steel Manufacturer by

The best way to understand the effect of foreign competition in the steel industry is to think about the oil market.

A worldwide increase in gas and oil production has trickled down to lower prices at the gas pump because the supply exceeds demand.

A similar thing is happening in the global steel industry, said Phil Gibbs, vice president and equity research analyst for KeyBanc Capital Markets Inc. of Cleveland, focusing on the metals and mining industry. Companies producing more and more steel on the global playing field and importing those products into the United States are driving down prices per unit, and threatening sales margins of domestic producers.
The global forces in the steel industry are having a direct impact on the local economy where one of the region’s largest companies, Fortune 500 steelmaker AK Steel Holding Corp., is cutting jobs, reviewing expenses and struggling to keep sales and profits up.

Read more: Cleveland Ohio Manufacturer: AK Steel’s newest challenge: a worldwide glut of steel