American steel stocks soared Thursday after Trump’s Commerce Secretary Wilbur Ross said that the White House planned to investigate claims that Chinese companies are dumping steel on the U. S. market.
Ross said Thursday that the Commerce Department plans to launch an investigation into whether or not foreign steel companies, particularly those from China, are dumping steel on the U. S. market.
Ross argued that China is not acting in good faith to cut back on exports.
He said in a press conference that steel imports « have continued to rise, and they’ve continued to rise despite repeated Chinese claims that they were going to reduce their steel capacity when instead they have actually been increasing it consistently. »
Ross noted that steel imports are up nearly 20% so far this year and that foreign steel now makes up more than a quarter of the entire U. S. market. He said that has had « a very serious impact » on the domestic steel industry and that it could impinge on « our economic and national defense security. »
Shares of many American steel companies, including U. S. Steel (X) , Nucor (NUE) , Cliffs Natural Resources (CLF) , AK Steel (AKS) and Steel Dynamics (STLD) all soared on the news, with some of the steel stocks climbing nearly 10%.
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Steel Dynamics also reported solid earnings Wednesday and Nucor issued a strong report Thursday, further helping to lift the group.
The broader market was in rally mode too, thanks in large part to comments from Treasury Secretary Steven Mnuchin about the possibility of a tax reform plan being announced soon.
