AIIS and AISI Commentary on June Import Data

“The decrease in imports could be, at least in part, a reflection of lingering economic uncertainty. The nearly 3 percent drop in GDP in the U.S. during the first quarter may have shaken business confidence, in addition to producing some excess inventory, lowering the demand for steel. If the economy improves, steel purchases likely will as well. Another factor that could affect steel imports during the rest of the year is the decision by the U.S. Department of Commerce to impose duties on steel imports from nine countries, most notably South Korea, which accounts for more than half of oil country tubular goods (OCTG) imports. These protectionist measures could exert downward pressure on imports – and upward pressure on prices.”

AISI provided to SMU the following statement on June import data.

“Imports remain significantly up year to date—26% for finished steel and 34% for total steel—as they have for a number of years since the surge began. And imports have captured 27% of the market share. These total numbers are what should be analyzed to determine impact on the steel industry, not month to month. The overall surge in imports has led some steel producers to file trade cases on five different products, and a number of facilities have already been idled and workers have lost their jobs. For import—including many from foreign countries whose steel industries are government-owned or subsidized—to to truly decline, the government must support strict and full enforcement of our trade remedy laws and take action against any unfair dumping and subsidies to the fullest extent of the law. And Congress should also consider customs enforcement legislation to address the growing problem of fraudulent schemes exploited by foreign producers to circumvent and evade U.S. trade laws.”

We invite our readers to send in their own commentary to SMU on this important issue for the steel industry.