Steel exports rose for the second straight month but are still down 15 percent as compared to last year, largely because of shrinking demand in Canada.
U.S. exports totaled 885,191 in June, a 1.7 percent increase over May but a 15 percent decline as compared to June 2014, according to the American Institute for International Steel. Exports to the United States's two largest trading partners, Canada and Mexico, have fallen off after the price of crude oil crashed.
So far this year, U.S. exports are down 12.6 percent as compared to the first six months of 2014. Exports have fallen 20.3 percent to Canada, and 1 percent to Mexico.
In June, exports to Canada, which traditionally buys half of all U.S. exports, were up 8.8 percent as compared to May but down 17.1 percent as compared to the previous year, largely because of the decline in crude oil prices. Exports to Mexico trailed last June by 0.9 percent.
The United States shipped only 23,527 net tons to the European Union, a decline of 12.9 percent as compared to May and of 17.3 percent as compared to last year. U.S. exports to the EU, which has been recovering from a long period of economic doldrums, are however still up 11.2 percent year-to-date.
"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," the American Institute of International Steel said in a statement.
"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. 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."
AIIS, which favors free trade, does not forecast any improvement in the immediate future.
"With little indication that oil prices will increase any time soon and restart dormant drilling and fracking projects, the outlook for steel exports remains bearish," AIIS said.
source: http://www.nwitimes.com