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AIIS: Economically Sound Reason for Rise in Imports in May 2014
07/08/2014 - U.S. steel imports continued to grow in May 2014, and the U.S. has brought in nearly a third more steel through the first five months of the year than it did during the same time last year, the American Institute for International Steel (AIIS) reported.
Imports in May increased 7.4% from April to reach 4 million net tons, 41.5% more than in May 2013. That pushed year-to-date imports to 17.5 million net tons, 31.7% more than in the January-to-May period a year ago.
The European Union led all steel exporters to the U.S. in May, accounting for 659,000 net tons, a 23.9% increase over April and a 57.3% jump from last May. Imports from South Korea showed an even greater spike, growing by nearly half month-over-month and more than doubling year-over-year to reach 583,000 net tons. Imports from Canada were down slightly from April to 541,000 net tons, but that was still 18.4% higher than a year earlier.
Russia is driving much of the increase in year-to-date numbers, with imports from that country growing 269.5% to 2.2 million net tons, while China had the second-largest increase: 72.9% to 1.3 million net tons. South Korea and the European Union also showed significant expansion, with respective growth of 35.8% to 2.2 million net tons and 34.6% to 2.6 million net tons. Imports from Canada were up just under 5% to 2.5 million net tons.
Critics will surely offer negative interpretations of the import numbers, but there is a reason behind the increase, and it is an economically sound one, AIIS said. Without imports, U.S. businesses and consumers, given the spread between domestic and global prices, might have overpaid as much as several billion dollars for steel this year. This likely would have slowed capital investment and driven up prices, adding drag to the economy at the worst possible time — when GDP was already shrinking. Affordable steel from abroad is an indispensable part of a healthy American economy, AIIS stated.
Total steel imports in May 2014 were 4.016 million tons compared to 3.738 million tons in April 2014, a 7.4% increase, and a 41.5% increase compared to May 2013. For the year-to -date period, imports increased from 13.272 million tons in the first five months of 2013 to 17.479 million tons in the same 2014 period, a 31.7% increase. The data show that imported semi-finished products increased by 60.7% in May 2014 compared to May 2013, from 679 thousand tons in 2013 to 1.091 million tons in 2014, based on preliminary reporting. For the year-to-date period, imported semi-finished products decreased from 2.877 million tons in the first five months of 2013 to 1.855 million tons in the same 2014 period, a 35.5% decrease.
The American Institute for International Steel is the only steel-related association that supports free trade. The Institute accomplishes its mission through advocacy, networking, communications, and education.
The European Union led all steel exporters to the U.S. in May, accounting for 659,000 net tons, a 23.9% increase over April and a 57.3% jump from last May. Imports from South Korea showed an even greater spike, growing by nearly half month-over-month and more than doubling year-over-year to reach 583,000 net tons. Imports from Canada were down slightly from April to 541,000 net tons, but that was still 18.4% higher than a year earlier.
Russia is driving much of the increase in year-to-date numbers, with imports from that country growing 269.5% to 2.2 million net tons, while China had the second-largest increase: 72.9% to 1.3 million net tons. South Korea and the European Union also showed significant expansion, with respective growth of 35.8% to 2.2 million net tons and 34.6% to 2.6 million net tons. Imports from Canada were up just under 5% to 2.5 million net tons.
Critics will surely offer negative interpretations of the import numbers, but there is a reason behind the increase, and it is an economically sound one, AIIS said. Without imports, U.S. businesses and consumers, given the spread between domestic and global prices, might have overpaid as much as several billion dollars for steel this year. This likely would have slowed capital investment and driven up prices, adding drag to the economy at the worst possible time — when GDP was already shrinking. Affordable steel from abroad is an indispensable part of a healthy American economy, AIIS stated.
Total steel imports in May 2014 were 4.016 million tons compared to 3.738 million tons in April 2014, a 7.4% increase, and a 41.5% increase compared to May 2013. For the year-to -date period, imports increased from 13.272 million tons in the first five months of 2013 to 17.479 million tons in the same 2014 period, a 31.7% increase. The data show that imported semi-finished products increased by 60.7% in May 2014 compared to May 2013, from 679 thousand tons in 2013 to 1.091 million tons in 2014, based on preliminary reporting. For the year-to-date period, imported semi-finished products decreased from 2.877 million tons in the first five months of 2013 to 1.855 million tons in the same 2014 period, a 35.5% decrease.
The American Institute for International Steel is the only steel-related association that supports free trade. The Institute accomplishes its mission through advocacy, networking, communications, and education.
