Steel Products Prices North America
March Apparent Steel Supply Jumps to 14-Month High
Written by Brett Linton
May 20, 2021
March apparent steel supply rose nearly 1.5 million tons from February’s dip, now at 8.96 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. This is the highest supply level seen since January 2020’s 9.52 million tons. March also marks the largest month-over-month increase in supply seen in 11 years, going back to March 2010 when supply jumped 22.6% or 1.50 million tons. Aside from the February 2020 slip, apparent supply has increased each month since April 2020. Recall that April and May of 2020 were the two lowest levels seen in the last 10 years at 6.53 million tons and 6.60 million tons, respectively. March supply is up 327,000 tons compared to the same month in 2020.
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.
March apparent supply rose by 3.8% compared to the same month one year ago when supply was 8.63 million tons. This increase was due to a 270,000-ton increase in finished imports and a 150,000-ton increase in domestic shipments, slightly negated by a 90,000-ton increase in exports.
The net trade balance between U.S. steel imports and exports rose to a surplus of 1.52 million tons imported in March, up 24.1% from the previous month and up 43.6% from one year prior. Finished steel imports accounted for 20.1% of apparent steel supply in March, up from 19.3% in February, and up from 17.7% one year ago.
Compared to February when apparent supply was 7.51 million tons, March supply jumped by 1.45 million tons or 19.3%. This increase was primarily due to a 1.22-million-ton rise in domestic shipments, followed by a 347,000-ton increase in finished imports, both of which were partially negated by a 113,000-ton increase in exports.
The figure below shows year-to-date averages for each statistic over the last five years. 2021 apparent supply remains significantly lower compared to the monthly averages 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
Nucor increases CSP, aims for $720/ton for HRC
Nucor has raised its weekly consumer spot price (CSP) by $10 per short for hot-rolled (HR) coil to $720/st.
Nucor inches HR price up, aims for $695/ton
Nucor increased its consumer spot price (CSP) for hot-rolled (HR) coil to $695 per short ton (st), up $5/st from last week.
Nucor maintains $690/ton HR base price
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil is unchanged from last week at $690/ton.
CRU: US prices find a bottom as other markets fall
The US sheet market appears to have reached a bottom following consistent weekly declines since April. However, other markets remain weak due to limited demand. Trading in Europe has been slow due to summer holidays. While European mills are also undergoing maintenance outages, these have not been enough to offset ongoing price falls, with weak […]
Cliffs seeks $700/ton for HR, up $30/ton from last week
Cleveland-Cliffs said on Wednesday that it would seek at least $700 per short ton (st) for hot-rolled (HR) coil. The Cleveland-based steelmaker said it made the move "due to ongoing market developments." The company said the increase was effective immediately for HR orders for September.