Steel imports fell 4 percent in April, but continued to grip a full third of the U.S. market share.
So far this year, imports are on pace to crush the previous record for market share — by a margin of nearly 18 percent.
The steel industry has become increasingly globalized, and multinational steelmakers like ArcelorMittal and Sevestal often import raw steel into the United States for finishing. But U.S. steelmakers say the root cause for so many cheap imports is as much as 600 million tons of global overcapacity that has led China, South Korea and other countries to subsidize exports that are sold at a loss in America. Here domestic steelmakers have to foot their own bills without comparable government assistance.
The United States imported 3.4 million net tons of steel in April, a 3.7 percent decline compared to March, according to the American Iron and Steel Institute. Finished imports dropped 7.8 percent from March to an estimated 2.9 million tons in April.
Standard pipe, heavy structural shapes, cold-rolled sheets, and sheets and strip and all other metallic coatings all posted double-digit increases in April over March.
So far this year, line pipe imports are up 93 percent, heavy structural shapes have increased by 81 percent and cut-length plates have risen by 49 percent, according to the American Iron and Steel Institute. The long list of finished imports that have posted significant gains in 2015 include standard pipe, plates in coils, cold-rolled sheets, reinforcing bars, tin plate, oil country tubular goods, and hot-rolled sheets.
Overall, total steel imports are up 13 percent over the same period in 2014. The United States has already imported 15.2 million net tons of raw steel through April, or more than three times as much as ArcelorMittal Burns Harbor can make over the course of an entire year.
Finished steel imports have skyrocketed 27 percent to 12.6 million net tons year-to-date, according to American Iron and Steel Institute data. Finished products account for 33 percent of the market share in April and year-to-date.
On an annualized basis, finished steel imports would be up 12 percent over 2014.
Imports do appear to be cooling off, according to the pro-free trade American Institute for International Steel.
"While imports have been declining on a month-to-month basis, they had been staying above the levels of a year earlier," the association said in a statement. "Until April, that is. The negative trend is now growing more pronounced, and, if it continues, the year-to-date total could soon fall below 2014. Despite the influence of a strong dollar, reduced steel demand in the energy sector resulting from low oil and natural gas prices and an apparent softening of the U.S. economy indicate that a bear market for steel imports is likely for the rest of 2015."
Source: NW Times
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