Steel Smuggling Ruining Steel Angle Market
When I think of the steel industry, I do not associate it with illegal activities and high-crime, yet that is the case for some steel factories around the world. Right now, the steel angles market is facing trouble due to the smuggling of steel angle products into the market and across borders. Some steel angle manufacturers estimate that about 50 percent of the steel angles market is eaten up by smugglers and sub-par products. Over 600 tons of uncertified and counterfeit steel products were uncovered by the PNP Intelligence Group and Department of Trade and Industry. The estimated amount of lost revenue due to counterfeit steel is over 500 million dollars.
The smuggling comes from other countries trying to avoid the tariffs and taxes that the United States currently places on incoming steel products from other countries. The taxes and tariffs are higher than ever, which has lead to many countries trying to smuggle their steel products into the U.S.market illegally. The Department of Trade and Industry believes that most of the smuggled metals are coming from China, as China currently faces some of the highest U.S.tariffs.
The problem with smuggled goods is that there is no way to test the products for safety and quality. Often, these products are made with poor-quality metals and unstable processing procedures, which can lead to a variety of problems, including building instability and failure under extreme weather conditions and earthquakes.
It can be easy to identify potentially smuggled and sub-standard steel products in two ways. Firstly, most smuggled metal products are sold about 10 or 15 percent below industry-grade manufactured angle bars. The steel also lacks the markings of safety approval by the DTI’s Bureau of Product Standards.