Steel Imports Down 5% by the End of 2008
01/08/2009 - Steel import permit applications totaled 2,009,000 net tons for the month of December, a 15% decrease from the 2,366,000 permit tons recorded in November 2008, and a 10% decline from the November preliminary imports total of 2,241,000 net tons, according to the latest report from AISI.
Steel import permit applications totaled 2,009,000 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 was a 15% decrease from the 2,366 ,000 permit tons recorded in November 2008, and a 10% decline from the November preliminary imports total of 2,241,000 net tons.
The report also shows that the December total included 1,797,000 net tons of finished steel, a 13% decrease from the preliminary imports total of 2,058,000 net tons in November.
Full-year 2008 imports (including December SIMA and November preliminary) were 31,703,000 net tons, down 5% from the 33,244,000 net tons imported in 2007. Full-year finished steel imports ended the year at 25,739,000 net tons, down 3% from the 26,587,000 NT imported in 2007.
In December 2008, the largest finished steel import permit applications for offshore countries were for China
(488,000 net tons), India (132,000 net tons), South Korea, (102,000 net tons) and Japan (94,000 net tons). Chinese permit tonnage was more than Canada and Mexico combined, and over three times that of any other offshore supplier.
Despite a 17% decrease in December (vs. November preliminary imports), permit tonnage for Chinese steel still represented 27% of total SIMA finished steel permit tonnage. In addition, imports of Chinese finished steel in the 4th Quarter of 2008 would annualize at 7.2 million tons—1.7 million tons higher than the record amount of United States’ steel imports from China set in 2006.
Major finished steel import products that registered large increases in December vs. the November preliminary include Heavy Structural Shapes (+ 52%) and Cold finished Bars (+ 16%). Import products with significant increases for full year 2008 vs. 2007 include Oil Country Goods (+ 103%) and Hot Rolled Bars (+ 12%).
“While overall imports have been fairly stable, imports from China surged in the second half,” said AISI President and CEO Thomas J. Gibson, summing up 2008 imports (including November preliminary and December SIMA data). Of particular concern is that the China import surge in the fourth quarter took place at a time when U.S. end-use market demand and domestic steel production were both down significantly.
“We are therefore very alert to the possibility that, in 2009, there could be further surges of direct and indirect steel imports from China — a country with enormous overcapacity in steel and related industries, and whose own economy is slowing dramatically,” added Gibson. “This is why we urge the next Administration to insist that China play by the rules, comply with all of its WTO obligations and not try to export its way out of the current crisis through urging exports of dumped and subsidized steel and other manufactured goods.”
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. AISI comprises 27 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.
