U.S. Exports Up In June, But Outlook Remains Weak, Says Steel Institute
08/07/2015 - For the second month in a row, domestic steel exports have grown, increasing by 1.7 percent to 885,191 net tons, according to the American Institute for International Steel.
Nevertheless, U.S. exports are still off by 15 percent from June 2014, the institute said. Shipments to the two biggest destinations for American-made steel, Canada and Mexico were up on a month-over-month basis, but remained down from June 2014, the institute said, adding that the monthly gains were partially offset by a 12.9 percent decline in exports to the European Union.
Shipments to the European Union dropped to 23,527 net tons, down 17.3 percent from June 2014.
"As always, the performance of steel exports is largely dependent on the performance of the economies of Canada and Mexico, and neither has been that strong this year. In fact, gross domestic product in Canada shrank in each of the first five months of the year, in large part because of low oil prices, putting the country on the verge of a recession, if it’s not already there," the institute said in a statement.
"Mexico has also been hurt by the low price of oil, but it, at least, still expects growth of around 2.5 percent this year. These developments are reflected in the United States’ steel export numbers. While exports to Mexico have largely held steady this year, exports to Canada have plummeted. With little indication that oil prices will increase anytime soon and restart dormant drilling and fracking projects, the outlook for steel exports remains bearish."
Shipments to the European Union dropped to 23,527 net tons, down 17.3 percent from June 2014.
"As always, the performance of steel exports is largely dependent on the performance of the economies of Canada and Mexico, and neither has been that strong this year. In fact, gross domestic product in Canada shrank in each of the first five months of the year, in large part because of low oil prices, putting the country on the verge of a recession, if it’s not already there," the institute said in a statement.
"Mexico has also been hurt by the low price of oil, but it, at least, still expects growth of around 2.5 percent this year. These developments are reflected in the United States’ steel export numbers. While exports to Mexico have largely held steady this year, exports to Canada have plummeted. With little indication that oil prices will increase anytime soon and restart dormant drilling and fracking projects, the outlook for steel exports remains bearish."
