The steel industry in China is heavily subsidised by its government, according to a report issued by leading US steel industry associations, including the Committee on Pipe and Tube Imports (CPTI).

"This report provides a thorough overview of China's 25 largest steel producers and details the amount and types of government subsidies each company received in recent years, which in turn have contributed to the country's excessive overcapacity in steelmaking," according to Roger B Schagrin, executive director and general counsel of the CPTI.

Schagrin said it was unreasonable to believe that US steel pipe and tube producers can compete in the global trade arena when a foreign government is subsidising its steel industry. "It is time that our government and our global allies work together on a definitive policy that will end this chronic overcapacity which has resulted in plant closures, worker reductions and injury to communities across the United States," he said.

The report points out that China produced 822 million tonnes of steel in 2014, representing half of the world's steel production. Despite weakening demand in the global market, China continues its domestic steel industry expansion by bringing online new facilities.

The CPTI was established in 1984 and describes itself as 'the leading voice of domestic producers of steel pipe, tube and fittings with 46 member companies located across the United States'.