Steel Products

Flat Products Imports Highest in Over Two Years
Written by David Schollaert
June 17, 2021
U.S flat products import volumes are at their highest level in more than two years—and import data for May has not yet been finalized. The U.S. is poised to import at least 914,886 metric tons of flat products in May, according to the latest import license data from the Commerce Department.
That volume is already 16.7% higher than the 784,283 metric tons that arrived in April, per initial government import data. Import license data is a preliminary figure, typically updated weekly by Commerce, and provides a snapshot of import volumes ahead of the more authoritative monthly totals.
May’s volumes are also 34.4% higher than the same year-ago period. Year-to-date, U.S. imports of flat products total 3.85 million metric tons, more than 48.0% of 2020’s total.
These increases relate well with feedback from Steel Market Update’s (SMU) survey results. SMU surveys steel buyers, wholesalers, service centers, and manufacturers on a bi-weekly basis. Import volumes have risen as buyers have sought relief from soaring steel prices. And SMU survey results dovetail with that trend.
In mid-March, approximately 19.0% of survey respondents were importing foreign steel. The total jumped to 24% in less than a month. In SMU’s latest survey, 69.0% of survey respondents reported actively buying foreign steel. Even more impressive was that nearly 53.0% of respondents had increased their import volumes by at least 30.0% since the beginning of the year, while 22.0% had increased their sourcing of foreign steel by 50.0% or more since January.
Buyers are not getting much pricing relief by sourcing foreign steel, according to SMU’s survey results. But they are finding much-needed volumes. These dynamics underscore the historic run-up in prices—HRC now averages $1,720 per ton, according to SMU—and tight domestic supply has been unable to keep pace with pent-up demand.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Products

September energy market update
In this Premium analysis we examine North American oil and natural gas prices, drill rig activity, and crude oil stock levels through September. Trends in energy prices and rig counts serve as leading indicators for oil country tubular goods (OCTG) and line pipe demand.

Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.

U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]

SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.

HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.