Steel Import Permits Decline 9% in December
01/07/2010 - Steel import permit applications reached 1,326,000 net tons for the month of December, a 9% decrease from the 1,450,000 permit tons recorded in November 2009, according to the latest report from AISI.
Steel import permit applications reached 1,326,000 net tons for the month of December according to the latest report from the American Iron and Steel Institute (AISI).
The AISI report, which is based on the Commerce Department’s most recent Steel Import Monitoring and Analysis (SIMA) data, shows that the December total represents a 9% decrease from the 1,450,000 permit tons recorded in November 2009 and an increase of less than 1% from the November preliminary imports total of 1,321,000 NT.
The report also shows that December’s total included 1,116,000 net import permit tons for finished steel, which was an increase of 17% from the preliminary imports total of 954,000 net tons in November.
Full year 2009 total steel import tons (including preliminary November and SIMA permit tons for December) are 16,075,000 net tons, down 50% from the 31,927,000 net tons imported in 2008. Finished steel import tons for full year 2009 (also including preliminary November and SIMA permit tons for December) are 14,107,000 net tons, down 46% from the 25,956,000 net tons of finished steel imported in 2008.
While this would be the lowest yearly tonnage of finished steel imports since 1991, finished steel import market share has remained high in a severely depressed domestic market. This finished steel import market share is estimated at 18% in December and at 21% for the year as a whole.
In December, the largest finished steel import permit applications for offshore countries were for Korea (124,000 net tons, up 18% from November), Japan (100,000 net tons, up 83%), India (58,000 net tons, up 204%), China (44,000 net tons, down 28%) and Germany (37,000 net tons, up 20%). For 2009 as a whole, the largest offshore suppliers of finished steel were China (1.4 million net tons), Korea (1.3 million net tons) and Japan (1.0 million net tons).
Finished steel import permits for major product categories that registered significant increases in December vs. the November preliminary include
- Oil country goods, + 70%
- Wire rods, + 57%
- Hot rolled bars, + 34%
- Line pipe, + 20%
- Cold rolled sheets, + 17%
While full year 2009 total imports decreased by 50% vs. 2008, semi-finished imports declined by 67%, reflecting the much lower production levels of domestic producers. With respect to the 46% decrease in full-year 2009 finished steel imports, several key categories (including bar and tubular products) declined more than 50%, while the decline for sheet products was less than 40%.
While the across-the-board decline in finished steel imports was significant, it did not result in a substantial loss of market share for import suppliers. The 2009 finished steel import market share of 21% was similar to levels for 7 of the past 10 years, with only 2003 (a year of Section 201 trade relief) being measurably lower.
“The thing that stands out about the steel import situation in 2009 is that three major Asian suppliers were each able to send to the U.S. market a million tons or more at a time when domestic capacity is more than sufficient to meet U.S. needs, and that imports overall were able to maintain a high market share despite the worst domestic steel market conditions since the end of World War II,” commented AISI president and CEO Thomas J. Gibson. “As the United States begins what promises to be a long and very slow road of economic recovery, it is critical — not only for steel, but for America’s manufacturing base in general — that we preserve and enhance our vital laws against unfair trade and that there be zero tolerance of dumped and subsidized imports.”
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. The Institute comprises 24 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.
