Steel Products Prices North America
November Apparent Steel Supply at 7.32 Million Tons, Steadily Increasing
Written by Brett Linton
January 19, 2021
U.S. apparent steel supply continued its upwards crawl in November, up 0.4 percent to 7.32 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. While supply levels have improved each month since May, recall that April and May were the two lowest levels seen in the last 10 years at 6.54 million tons and 6.61 million tons, respectively. Apparent steel supply, a proxy for demand, is determined by combining domestic steel mill shipments and finished U.S. steel imports, then deducting total U.S. steel exports.
November apparent supply was down 1.04 million tons (12.5 percent) compared to the same month one year ago when supply was 8.37 million tons. This change was primarily due to a 912,000-ton decline in domestic shipments, combined with a 92,000-ton decrease in finished imports and a 41,000-ton increase in total exports.
The net trade balance between U.S. steel imports and exports was a surplus of 704,000 tons imported in November, down 10.1 percent from the previous month, and down 23.3 percent from one year prior. Finished steel imports accounted for 16.9 percent of apparent steel supply in November, down from 17.5 percent in October, but up from 15.9 percent one year ago.
Compared to the prior month when apparent steel supply was 7.29 million tons, November supply rose 31,000 tons or 0.4 percent. This change was due to a 61,000-ton decrease in exports, partially negated by a 36,000-ton decrease in finished imports. Domestic shipments were flat month-to-month, up less than 6,000 tons.
The figure below shows year-to-date averages for each statistic over the last five years. As has been the case for the last few months, 2020 apparent supply remains significantly lower compared to the first 11 months of all previous years shown.
To see an interactive graphic of our Apparent Steel Supply history (example shown below), visit the Apparent Steel Supply page in the Analysis section of the SMU website. If you need any assistance logging into or navigating the website, contact us at info@SteelMarketUpdate.com.
By Brett Linton, brett@steelmarketupdate.com
Brett Linton
Read more from Brett LintonLatest in Steel Products Prices North America
SMU Price Ranges: Sheet floor holds as market debates upside
Our average HR coil price increased $5/short ton from last week, marking a second consecutive week of modest gains. Market participants generally attributed the increase to...
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.