US steel imports drop in February

OREANDA-NEWS. March 26, 2015. US imports of steel fell by 18.4 pc in February from the prior month, led by declines in hot rolled coil and oil country goods products that were hit by weak crude prices and a strengthening dollar.

Imports of raw and finished steel fell to 3.58mn short tons (3.2mn metric tonnes) in February from 4.4mn st in January, the American Iron and Steel Institute said, citing preliminary data for February from the Census Bureau.

Imports of finished steel fell by 20.7pc to 2.8mn st from the prior month. Shipments of hot rolled sheet dropped by 40pc to 308,794st while imports of oil country goods were off by 36pc at 349,618st. Ingots and billets and slabs were off by 8.3pc at 748,953st

Imports of finished steel from South Korea led foreign shipments, at 481,000st even as they fell 43pc from January; shipments from China were up 34pc at 265,000st, and imports from Turkey were down 21pc at 235,000st.

Finished steel market share for imports was about 32pc in February and is estimated at about 33pc year to date.

Year-to-date total imports were up by 22pc at 7.98mn st from the same period last year. Finished steel imports year to date rose by 36pc at 6.4mn st.

For the first two months, South Korea led finished imports, up by 60pc at 1.3mn st; with Turkey following, up by 78pc at 533,000st; and China up by 26pc at 462,000st.

Total steel imports in 2014 were 44.3mn st, with finished imports at 33.8mn st.

US steelmakers AK Steel and Nucor last week warned that their first quarter shipments and pricing would be hurt by the flood of imports that has been spurred by a strengthening US dollar and overcapacity in China and elsewhere.

"Global overcapacity built by state-owned enterprises is the biggest risk factor to our business," North Carolina-based Nucor said.

In addition to global overcapacity, AK said, the recent strengthening of the dollar has also boosted imports.

The dollar has gained more than 15pc against a basket of major currencies in the past six months, and more strength is likely after the US Federal Reserve last week signaled it may begin raising its overnight lending rates at midyear.

The plunge in crude prices has also hurt demand for oil country goods, tubes and pipes used for oil drilling and production.