Steel Exports Rise to 9 Month High

Exports to Canada were nearly unchanged month-to-month at 413,951 net tons, but were 7 percent lower than in June 2015. Exports to Mexico increased 3.7 percent from May but decreased 6.6 percent from the previous June to total 315,937 net tons, while exports to the European Union fell 13.5 percent from the preceding month to 21,833 net tons, 7.2 percent less than in June of last year.

Through the first half of the year, steel exports were down 10.5 percent to 4.75 million net tons compared to the same period in 2015. Exports to Canada slipped 5.8 percent to 2.42 million net tons, exports to Mexico dropped 11.1 percent to 1.81 million net tons, and exports to the European Union plummeted 36 percent to 122,615 net tons.

Canada’s economy continues to struggle, recording negative growth in February, March and May, and losing 31,000 jobs in July. Mexico had been showing more promise than the United States’ northern neighbor, but its economy shrank at a 1.2 percent annualized rate in the second quarter. This was the nation’s first quarterly contraction in three years. With the two countries that buy about 90 percent of the steel that is shipped out of the United States in such poor shape – and with the U.S. dollar maintaining its high value against the loonie and the peso – exports do not seem likely to substantially increase anytime soon.]

The table below is from Steel Market Update, you can view more on our Steel Exports webpage here.