AIIS: Steel Exports for August 2016

The 812,011 net tons of exports were 1.7 percent below the August 2015 total. The monthly gains were driven by a 13 percent boost in exports to Mexico and an 11.5 percent jump in exports to Canada. The respective totals of 336,098 net tons and 407,524 net tons were 6 percent higher and 0.3 percent higher than in the previous August. Exports to the European Union fell 22.1 percent to 17,684 net tons, 46.2 percent less than in August of last year.

Through the first two-thirds of the year, aggregate exports are 9.3 percent lower than during the same period in 2015 at 6.3 million net tons. Year-to-date exports to Mexico dropped 8.3 percent to 2.44 million net tons and exports to Canada slipped 5.4 percent to 3.2 million net tons. Exports to the European Union through the first eight months of 2016 are down 34.6 percent at 162,989 net tons.

Canada’s economy appears to be regaining some strength after its 1.6 percent contraction in the second quarter (which was caused, in part, by the Alberta wildfires in May). The bounce-back seems to have started at the end of Q2, with June and July growth the country’s strongest in back-to-back months in almost five years. The Mexican economy may also be back in the black after shrinking 0.2 percent during the second quarter. As economic activity speeds up, so does steel consumption