Steel Products Prices North America

Import Licenses Trending Up in June

Written by Brett Linton

June 18, 2019

Halfway through the month, imports of foreign steel into the United States are trending considerably higher in June, based on license data from the Commerce Department. If import licenses continue at the current rate, June steel imports could approach 3 million tons—up from an estimated 2.6 million tons in May and the 12-month average of around 2.7 million tons.

Much of the increase from May is attributable to imports of semi-finished steel, mostly slabs purchased by domestic mills, forecast at a higher-than-average 886,000 tons at the current license rate. Finished steel imports are trending toward 2.1 million tons—also higher than the three-month and 12-month averages.

It seems unlikely that the final totals for June imports will show as big an increase as in these early estimates. With domestic steel prices already low and getting lower, service centers and OEMs have little incentive to assume the risk of buying foreign steel, which currently offers little price advantage.

 

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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