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
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
CRU: US stainless prices to rise on expanded S232 tariffs
Stainless prices in the US market will rise, following price increases by major US producers. Our base case scenario incorporates higher US prices in the near term, despite the initial negative reaction by the market. US stainless prices will go up in 2025 H2 and will stay elevated in 2026 as tariffs on stainless […]
Galvanized steel demand unsteady amid lingering buyer fatigue: HARDI
Uneven demand for galvanized steel in June reflects a market that remains mired in uncertainty, according to industry sources.
OCTG industry salutes Customs for catching trade crooks
The US OCTG Manufacturers Association is commending US Customs for intercepting another Thai company's attempt to illegally transship Chinese oil pipe to the US.