Shipping and Logistics

Steel Imports Increasing at Gulf Ports
Written by Sandy Williams
September 17, 2016
U.S. ports contacted by Steel Market Update report steel imports are beginning to increase in recent months after dropping in the first half of the year.
Port of Houston Authority reports that steel imports were down 59 percent through August 2016 for a total of 1.56 million tons. Steel exports also plunged by 45 percent to 61,159 tons.
A port services source reports a recent uptick in imports for flat rolled products in Houston. “Tonnages and frequency of arrivals both seem to be increasing. The market is starting to show strength but no one is prepared to speculate on later part of the 4th quarter.”
Steel inventory levels at warehouses in the Houston area are extremely low, about 35 percent of what they were prior to the recent antidumping determinations, said the SMU source.
“The newly arriving flatroll appears to be coming in larger tonnages and the processors, painters and manufacturers are shipping it out almost as fast as it is coming in,” he added. “This will continue to keep inventory levels minimized at the port and public warehouses.”
The port services firm commented on expectations for fourth quarter and next year: “Mid to late 4th quarter is going to be very difficult for imports into Houston and Savannah with the taxes assessed at the end of each year and most are not sharing what they are expecting imported. As you know it has been a hard year for the steel ports, especially Mobile and Houston because of their heavy reliance on flat rolled products. I think 1st quarter 2017 will be strong, with some trailing off in the 2nd, but that is pure speculation on my part.”
In New Orleans, steel imports have softened for the year. Janine Mansour, Deputy Chief Commercial Officer, Port of New Orleans told SMU, “Break bulk shipments are down 25% compared to last year with steel being 18% lower than year ago levels.” Steel imports for 2016 into the Port of New Orleans are expected to be down 20 percent compared to last year. Mansour noted that aluminum imports are up 130 percent this year.
New Orleans has seen an increase in imports for August and into September. “Vietnam and Russia, with Russia imports being wire rod, are two countries where we are seeing an increase in steel imports,” said Mansour. “Turkey has become a major player. In the past it was mostly the Asian countries.”
On the West Coast, the Port of Los Angeles reports a decrease of steel imports due to steel embargoes from China. Through August 2016, Port of Los Angeles handled 1.3 million metric tons of steel product compared to 1.9 million tonnes in the same period of 2015, a decrease of 31.6 percent.

Sandy Williams
Read more from Sandy WilliamsLatest in Shipping and Logistics

Canada Feeling Impact of West Coast Port Strike
Port workers on Canada’s West Coast are on strike, and ports are already feeling the impact of the slowdown in the movement of goods. More than 7,400 workers represented by the International Longshore and Warehouse Union Canada (ILWU Canada) took to the picket lines starting on July 1 after failing to reach a new labor […]

Report Highlights How Biden Can Help Aluminum
With the US aluminum industry at a critical juncture, a new report is highlighting ways the Biden administration can use the Global Arrangement for Sustainable Steel and Aluminum (GASSA) to help the struggling domestic industry. Recall CRU’s aluminum analysts have previously shared with SMU the nightmare US aluminum smelters have been facing when it comes […]

Tentative Labor Deal Reached at West Coast Ports
In good news for the movement of goods on the West Coast, a tentative labor agreement has been reached between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU). The new, six-year contract covers more than 22,000 ILWU dock workers represented at 29 West Coast ports. Details of the tentative agreement, which […]
Northwest Pipe Logs Strong 2022, Sees Challenging Q1
Despite a record backlog, Northwest Pipe Co. is experiencing a challenging start to the year, with customer-driven delays and severe weather hampering production at its various facilities. The Vancouver, Wash.-based company noted the challenges as it released its fourth-quarter and full-year 2022 results. Q4 brought higher production tonnages but lower selling prices within Northwest’s engineered steel […]

Final Thoughts
This past week was a rather notable one in recent memory when it comes to steel prices. We saw a wave of $60-per-ton sheet price hikes announced by domestic mills. It’s somewhat of an unfamiliar sight in the industry over the past couple of years or so, but just about everyone got in on the […]