This story originally appeared on MarketBeat We can use the VanEck Vectors Steel ETF (NYSEARCA: SLX) as a proxy for industrywide performance. The ETF, which tracks the NYSEARCA Steel Index. The ETF is up 29.31% year-to-date and 84.25% over the past year, although it’s down 3.66% for the month of May. However, global manufacturing overcapacity is a hurdle. In recent years, a growing number of tariffs and steel industry restrictions reduced imports from overseas producers into the U.S. The pandemic complicated the issue, with steel producers’ customers temporarily closed their factories or drastically reduced capacity. However, demand for goods bounced back much faster than many had expected back in the spring of 2020, meaning steel producers faced high demand, while global supply chains are still struggling.