AIIS: U.S. Steel Exports Dipped in October
12/16/2014 - U.S. steel exports dipped from September to October 2014 and fell nearly 11% from a year earlier, according to analysis from the American Institute for International Steel (AIIS).
Exports fell 2.3% month-to-month, and were 10.9% lower than they were in October 2013.
The two major buyers of American steel — Canada and Mexico — both reduced their purchases in October, the former by 3.8% to 537,003 tons, the latter by 1.2% to 348,804 tons. Both marked double-digit decreases from the previous October. Exports to the European Union, however, increased by nearly 50% from September to 35,238 tons, 28% more than a year earlier.
For the first 10 months of the year, exports were down 6.5% to 10,161,879 tons. Exports to Canada, which represent more than half of the total, decreased 5.2%, while exports to Mexico, which account for more than one-third of the overall number, increased 1.5%. Notwithstanding the gains in October, exports to the E.U. are down 11.6% on the year. Year-to-date exports to nearly all of the United States’ minor trading partners have decreased significantly compared to 2013, with one notable exception being Venezuela, where exports have increased more than 88% to 53,972 tons.
The decrease in exports in 2014 contrasts with a substantial increase in imports, which are up nearly 37% this year. There are several factors contributing to these two trends, including a U.S. economy that appears to be growing stronger while much of the rest of the world continues to struggle, massive exports from China, and the advantage that steel producers in many other countries have over domestic companies when competing on price. Such is the nature of a global market. The sale of steel – or any other commodity– is not a zero-sum game, however. Free trade is an economic force-multiplier that can shift the demand curve and benefit all producers, especially the most efficient ones.
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 two major buyers of American steel — Canada and Mexico — both reduced their purchases in October, the former by 3.8% to 537,003 tons, the latter by 1.2% to 348,804 tons. Both marked double-digit decreases from the previous October. Exports to the European Union, however, increased by nearly 50% from September to 35,238 tons, 28% more than a year earlier.
For the first 10 months of the year, exports were down 6.5% to 10,161,879 tons. Exports to Canada, which represent more than half of the total, decreased 5.2%, while exports to Mexico, which account for more than one-third of the overall number, increased 1.5%. Notwithstanding the gains in October, exports to the E.U. are down 11.6% on the year. Year-to-date exports to nearly all of the United States’ minor trading partners have decreased significantly compared to 2013, with one notable exception being Venezuela, where exports have increased more than 88% to 53,972 tons.
The decrease in exports in 2014 contrasts with a substantial increase in imports, which are up nearly 37% this year. There are several factors contributing to these two trends, including a U.S. economy that appears to be growing stronger while much of the rest of the world continues to struggle, massive exports from China, and the advantage that steel producers in many other countries have over domestic companies when competing on price. Such is the nature of a global market. The sale of steel – or any other commodity– is not a zero-sum game, however. Free trade is an economic force-multiplier that can shift the demand curve and benefit all producers, especially the most efficient ones.
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.
