AIIS: U.S. Steel Exports Declined 5% in 2014
02/25/2015 - Steel exports fell slightly from November to December 2015, capping off a 5% decline for the year, the American Institute for International Steel (AIIS) reported.
The 2.6% drop for the last month of 2014 largely resulted from decreases in exports to the United States’ North American Free Trade Agreement (NAFTA) partners. Exports to Canada dipped 2% to 469,939 tons, while exports to Mexico fell 4.5% to 334,968 tons. Canada’s total was nearly unchanged from last December, while Mexico’s was up 12.5%. Exports to the European Union, the third-largest buyer of American steel, increased 11.4% to 24,223 tons, 17.5% more than in December 2013, while exports to Brazil jumped nearly nine-fold to 18,889 tons, more than 4½ times the total from a year earlier.
Canada’s 6.39 million tons of steel purchases accounted for more than half of the12.04 million tons of United States exports in 2014, and a 4.9% decline in exports to Canada last year accounted for about half of the overall 5% drop from the previous year. Exports to Mexico, though, increased 3.4% during 2014 to 4.17 million tons. The E.U. reduced its purchases of American steel by 9.5% to 334,457 tons, while Brazil increased its total by more than 15% to 103,930 tons. Exports to China also increased by about 15% to 111,149 tons.
Considering the declining economic conditions in many parts of the world, we might have seen a larger reduction in steel exports last year than the 5% reduction we actually saw. Even as the U.S. enjoyed relatively stronger growth for much of 2014, many other nations struggled, which surely decreased their demand for steel. In addition, a strong U.S. dollar effectively increased the price of this nation’s exports. The outlook for 2015 is uncertain, with the global economy still shaky, and unrest in the Middle East and Ukraine threatening to spread instability. Even the U.S. economy cooled off in the 4th quarter, with 2.6% growth following expansion in the two previous quarters of 5% and 4.6%. When combined with a decrease in demand for steel in the U.S. energy sector as a result of falling oil prices, these factors could put significant pressure on steel sales this year.
The American Institute for International Steel (AIIS) is the only steel-related association that supports free trade. The Institute accomplishes its mission through advocacy, networking, communications, and education.
Canada’s 6.39 million tons of steel purchases accounted for more than half of the12.04 million tons of United States exports in 2014, and a 4.9% decline in exports to Canada last year accounted for about half of the overall 5% drop from the previous year. Exports to Mexico, though, increased 3.4% during 2014 to 4.17 million tons. The E.U. reduced its purchases of American steel by 9.5% to 334,457 tons, while Brazil increased its total by more than 15% to 103,930 tons. Exports to China also increased by about 15% to 111,149 tons.
Considering the declining economic conditions in many parts of the world, we might have seen a larger reduction in steel exports last year than the 5% reduction we actually saw. Even as the U.S. enjoyed relatively stronger growth for much of 2014, many other nations struggled, which surely decreased their demand for steel. In addition, a strong U.S. dollar effectively increased the price of this nation’s exports. The outlook for 2015 is uncertain, with the global economy still shaky, and unrest in the Middle East and Ukraine threatening to spread instability. Even the U.S. economy cooled off in the 4th quarter, with 2.6% growth following expansion in the two previous quarters of 5% and 4.6%. When combined with a decrease in demand for steel in the U.S. energy sector as a result of falling oil prices, these factors could put significant pressure on steel sales this year.
The American Institute for International Steel (AIIS) is the only steel-related association that supports free trade. The Institute accomplishes its mission through advocacy, networking, communications, and education.
