China's sheer capacity to out-produce all other markets is a looming nightmare for many in the domestic steel industry, said David Spooner, former Commerce assistant secretary for import administration.

"In my last two years at Commerce, 80 percent of the cases had to do with China," Spooner said at AMM's inaugural State of Steel Conference in New York, and the United States must balance trade issues with China using "legislation, negotiation and litigation."

Under Section 421 of the Trade Act,...