AIIS: U.S. Steel Imports Decline 11% in June
07/29/2014 - U.S. steel imports dropped more than 11% in June 2014, the first monthly decline since March 2014, according to government data analyzed by the American Institute for International Steel (AIIS).
The United States imported 3.6 million tons of steel in June, 11.1% less than in May. For the second month in a row, the European Union exported the most steel to the U.S., with 639,000 tons, though this was just over 3% less than the previous month’s total. Imports from Canada were up just over 1% to 534,000 tons, while imports from South Korea dropped almost 22% to 457,000 tons, this after a 45% increase in May. Brazil exported nearly the same amount of steel as South Korea to the U.S. — 456,000 tons, 5.6% more than in May. Imports from Mexico were up almost 31% to 407,000 tons. Steel imports from nearly all trading partners were significantly higher than they were in June 2013, with Brazil leading the way with a more than 150% year-over-year increase.
Despite the slowdown in June, year-to-date imports, at 21 million tons, are still 34% higher than they were through the first half of 2013. As during the month of June, the EU, Canada and South Korea have been the top steel exporters to the U.S. for the year, while Russia has taken the No. 4 spot, with imports from that country up 245% over the first six months of last year, notwithstanding the crisis in Ukraine. Brazil and Mexico are fifth and sixth for the year.
The decrease in imports could be, at least in part, a reflection of lingering economic uncertainty. The nearly 3% drop in GDP in the U.S. during the first quarter may have shaken business confidence, in addition to producing some excess inventory, lowering the demand for steel. If the economy improves, steel purchases likely will as well. Another factor that could affect steel imports during the rest of the year is the decision by the U.S. Department of Commerce to impose duties on steel imports from nine countries, most notably South Korea, which accounts for more than half of oil country tubular goods (OCTG) imports. These protectionist measures could exert downward pressure on imports — and upward pressure on prices.
Total steel imports in June were 3.585 million tons compared to 4.033 million tons in May 2014, an 11.1% decrease, and a 45.7% increase compared to June 2013. For the year-to-date period, imports increased from 15.732 million tons in the first six months of 2013 to 21.082 million tons in the same 2014 period, a 34% increase. The data show that imported semi-finished products increased by 81% in June 2014 compared to June 2013, from 486,000 tons in 2013 to 879,000 tons in 2014, based on preliminary reporting. For the year-to-date period, imported semi-finished products increased from 3.363 million tons in the first six months of 2013 to 5.530 million tons in the same 2014 period, a 64.4% increase.
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.
Despite the slowdown in June, year-to-date imports, at 21 million tons, are still 34% higher than they were through the first half of 2013. As during the month of June, the EU, Canada and South Korea have been the top steel exporters to the U.S. for the year, while Russia has taken the No. 4 spot, with imports from that country up 245% over the first six months of last year, notwithstanding the crisis in Ukraine. Brazil and Mexico are fifth and sixth for the year.
The decrease in imports could be, at least in part, a reflection of lingering economic uncertainty. The nearly 3% drop in GDP in the U.S. during the first quarter may have shaken business confidence, in addition to producing some excess inventory, lowering the demand for steel. If the economy improves, steel purchases likely will as well. Another factor that could affect steel imports during the rest of the year is the decision by the U.S. Department of Commerce to impose duties on steel imports from nine countries, most notably South Korea, which accounts for more than half of oil country tubular goods (OCTG) imports. These protectionist measures could exert downward pressure on imports — and upward pressure on prices.
Total steel imports in June were 3.585 million tons compared to 4.033 million tons in May 2014, an 11.1% decrease, and a 45.7% increase compared to June 2013. For the year-to-date period, imports increased from 15.732 million tons in the first six months of 2013 to 21.082 million tons in the same 2014 period, a 34% increase. The data show that imported semi-finished products increased by 81% in June 2014 compared to June 2013, from 486,000 tons in 2013 to 879,000 tons in 2014, based on preliminary reporting. For the year-to-date period, imported semi-finished products increased from 3.363 million tons in the first six months of 2013 to 5.530 million tons in the same 2014 period, a 64.4% increase.
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.
