AIIS: U.S. Steel Exports Sag in April; Softening International Demand Evident
06/06/2013 - U.S. steel exports declined 5.3% in April compared to March, according to government data analyzed by the American Institute for International Steel (AIIS).
“Other than a small increase in exports to Mexico, U.S. steel exports declined to all major markets and most minor markets in April as steel demand continues to be weak in NAFTA and international markets. The month-to-month decline in April, even in the normally stronger first half of the year, heavily reflects anemic conditions in the US and our NAFTA partners’ markets. Whether the seasonal upturn is merely delayed or is “cancelled” for 2013 is open to question. With other regions in the world also showing weak and weakening market conditions, exports have clearly been negatively affected,” said David Phelps, president of AIIS.
Steel exports in the first five months of the year of 2013 compared to the same 2012 period were down by 12.2%. “Year-to-year comparisons also show the poor state of the international steel market at this point, with exports down for every major and nearly every minor market for US-made steel. While such steel markets as autos and energy continue to consume healthy tonnages of steel this year in the US’s most important export market, the NAFTA region, overall market conditions in NAFTA remain stuck in the slow lane with lead times short, wavering pricing as cautious consumers try to keep inventory levels low. While there is a belief that the NAFTA market will return to a more healthy level of demand and pricing in the second half, there is little evidence of that so far as we approach mid-year. As with all internationally traded steel, consumers are reluctant to order steel from offshore suppliers during conditions such as we have experienced so far in 2013,” concluded Phelps.
Total steel exports in April 2013 were 1.041 million tons compared to 1.1 million tons in March 2013, a 5.3% decrease, and a 10.7% decrease compared to April 2012. According to year-to-date figures, exports decreased 12.2% compared to 2012 or from 4.844 million tons in 2012 to 4.255 million tons in 2013.
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