Steel Products Prices North America

December Apparent Steel Supply Rises from November's Lull
Written by Brett Linton
February 13, 2020
Apparent U.S. steel supply increased to 8.8 million net tons in December, according to data from the American Iron and Steel Institute and U.S. Department of Commerce. While up over the previous three months, December supply remains low compared to the last two years. Last month we reported that November supply was at a three-year low, the lowest seen since December 2016 when supply was 8.1 million tons. Apparent steel supply, a proxy for demand, is determined by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports.
December apparent supply saw a 131,000-ton decrease (1.5 percent) compared to the same month one year ago. This change was primarily due to a 333,000-ton decrease in finished imports, which was nearly negated by a 217,000-ton increase in domestic shipments.
The net trade balance between U.S. steel imports and exports was a surplus of 1,038,000 tons imported in December, up 9.9 percent from the prior month, but down 24.5 percent from one year ago. Finished steel imports accounted for 15.3 percent of apparent steel supply in December, down from 15.8 percent in November, and down from 18.8 percent one year ago.
Compared to the prior month when apparent steel supply was 8.4 million tons, December supply increased 447,000 tons or 5.3 percent. The increase was primarily due to a 356,000-ton rise in domestic shipments and a 67,000-ton decrease in exports.
The figure below shows annual averages for each statistic over the last five years. Apparent supply ended 2019 just below the 2018 monthly average, but still on the high side compared to years prior. Domestic shipments surpassed the 2018 monthly average and are at the highest levels seen since 2014. Semifinished imports are slightly down, while total imports, finished imports, and total exports are all down significantly.
To see an interactive graphic of our Apparent Steel Supply history (example below), visit the Apparent Steel Supply page in the Analysis section of the SMU website. If you need any assistance logging in or navigating the website, contact us at info@SteelMarketUpdate.com or 800-432-3475.

Brett Linton
Read more from Brett LintonLatest in Steel Products Prices North America

Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.

SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.

SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).

Domestic plate prices could heat up despite so-so demand, market sources say
Some sources also speculated that plate could see further price increases thanks to modest but steady demand, lower imports, mill maintenance outages, and end markets less immediately affected by tariff-related disruptions.

SMU Price Ranges: HR holds, galv slips amid competing market narratives
SMU’s sheet and plate prices see-sawed this week as hot-rolled (HR) coil prices held their ground while prices for galvanized product slipped.