An influx in Chinese and South Korean OCTG imports and manufactured steel into an already oversaturated market has companies in Alabama worried and taking actions to offset what has been a rough start to FY 2015. Fear over potential scale-backs and even potential layoffs only adds to the economic stress.
However, the domestic markets are quickly taking action. The Jefferson Count Commission is pushing through major tax abatements in order to help OCTG manufacturers and local Alabama steel miss over the next decade, according to the Birmingham Business Journal. While the results of these actions remain to be seen, it is a positive step in the right direction to help business move forward.
Aboard, the Chinese government has tried to put a curb on their own steel manufacturing though so far these actions have done little to alleviate the impact on global steel production. While many Chinese manufacturers are struggling to find resolutions for other issues such as a needed increase in minimum wage (along with the resulting employee retention), steel production have often took a backseat.
While many U.S. steel pipe manufacturers are feeling the impact of a downturn, it is important to remember that in the OCTG industry rises will often follow falls so many individuals and businesses in the industry will be keeping a close eye on the market over the next coming quarter.
However, the domestic markets are quickly taking action. The Jefferson Count Commission is pushing through major tax abatements in order to help OCTG manufacturers and local Alabama steel miss over the next decade, according to the Birmingham Business Journal. While the results of these actions remain to be seen, it is a positive step in the right direction to help business move forward.
Aboard, the Chinese government has tried to put a curb on their own steel manufacturing though so far these actions have done little to alleviate the impact on global steel production. While many Chinese manufacturers are struggling to find resolutions for other issues such as a needed increase in minimum wage (along with the resulting employee retention), steel production have often took a backseat.
While many U.S. steel pipe manufacturers are feeling the impact of a downturn, it is important to remember that in the OCTG industry rises will often follow falls so many individuals and businesses in the industry will be keeping a close eye on the market over the next coming quarter.
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