U.S. Steel Producers Ready to Rumble
By Peter Clark
August 25, 2017
The pressure on President Trump rises for National Security Action on steel. There is consolidated pressure from the steel industry. The push back by big users and their political supporters against this unnecessary action continues. Even the Trump Cabinet is split.
Is this Peter Navarro and Secretary Ross against the adults in the White House and the automotive industry and other large users? Quite likely.
There have been increased imports perhaps pulled in by the threat of National Security cutbacks.
See below for reports on imports (from offshore) trends. In fact, Canada is the largest foreign source of imported steel. But NAFTA precludes import controls for Trumped-up National Security reasons. NAFTA requires it be real National Security – tied to warfare and military defence. Brazil is significant too, but it seems to me that Brazilian exports of steel are focussed in semi-fabs
—
US steel producers press Trump to take action NOW against imports
In The Right Vein
By Alan Patrick Ryan
August 25, 2017
US steel producers want action NOW. The lead 25 US steel producers sent a letter to President Trump yesterday asking him to take “board and decisive action” against steel imports. Saying the need for action is urgent, the producers pointed out since the 232 investigation began in April, imports have continued to surge. “Immediate action must meaningfully adjust imports to restore healthy levels of capacity utilization and profitability to the domestic industry over a sustained period,” the producers wrote.
US steel imports continue to increase
In The Right Vein
By Alan Patrick Ryan
August 25, 2017
US imported a total of 3,472,000 net tons of steel in July 2017, including 2,868,000 net tons of finished steel (down 11.5% and 4.0%, respectively, vs. June final data), based on preliminary Census Bureau data. Year-to-date through seven months of 2017, total and finished steel imports are 23,168,000 tons and 17,938,000 tons up 22.1% and 17.3%, respectively, vs. the same period in 2016. Annualized total and finished steel imports in 2017 would be 39.7-and 30.8-million tons, up 20.3% and 16.8%, respectively, vs. 2016. Finished steel import market share was an estimated 29% in July and is estimated at 28% YTD.
Key finished steel products with significant import increases in July compared to June include standard pipe (up 38%), cut lengths plates (up 28%), line pipe (up 17%) and oil country goods (up 12%). Major products with significant year-to-date (YTD) increases vs. the same period in 2016 include oil country goods (up 254%), standard pipe (up 47%), line pipe (up 39%), cold rolled sheets (up 37%), sheets and strip all other metallic coatings (up 35%), mechanical tubing (up 32%), hot rolled bars (up 26%), sheets and strip hot dipped galvanized (up 25%), wire rods (up 13%) and tin plate (up 11%).
Who’s shipping steel to the US, definitely not China
In The Right Vein
By Alan Patrick Ryan
August 25, 2017
In July, the largest volumes of finished steel imports from offshore were from South Korea (337,000 tons, down 13% from June final), Turkey (252,000 tons, down 23%), Germany (148,000 tons, up 27%), Japan (137,000 tons, down 2%) and Taiwan (120,000 tons, down 29%). For the first seven months of 2017, the largest offshore suppliers were South Korea (2,265,000 tons, down 5% vs. the same period in 2016), Turkey (1,723,000 tons, up 14%), Japan (937,000 tons, down 12%), Taiwan (784,000 tons, up 54%) and Germany (750,000 tons, up 7%).
China accounted for only 82,000 tons in July, up 4.6% from June; for the first seven months of 2017, China supplied 506,000 tons, down 1.7% from the same 2016 period. On an annualized rate, China will export 868,000 tons, up 0.7% from 2016.