US Steel Imports Ease from 2017 Highs but Still Aren’t Comfortable
time2017/10/31
US Steel Imports Ease from 2017 Highs but Still Aren’t Comfortable
US steel imports
According to preliminary data released by the United States Census Bureau, the country imported 2.8 million metric tons of steel products in September. September steel imports have risen on a year-over-year (or YoY) basis, making it the 11th consecutive month where imports have risen YoY. However, steel imports fell month-over-month last month. US steel imports have fallen month-over-month for three months. Prior to that, June steel imports surged to the highest level since January 2015.
Although US steel imports have come off their 2017 highs, the absolute level of imports is still high for the comfort of US steelmakers (XME) (AKS). Both Nucor (NUE) and Steel Dynamics (STLD) pointed to the higher level of steel imports during their 3Q17 earnings call.
Product-wise breakup
Looking at key product categories, HRC (hot roll coil) imports fell 28.1% YoY to 156,359 metric tons in September. In absolute terms, September HRC imports were the lowest since March 2017. However, CRC (cold roll coil) imports rose 5.6% YoY last month. It’s worth noting that the spreads between US and international HRC prices aren’t high. Thus, we are seeing a gradual decline in imports. However, there is a significant differential between US and international CRC and galvanized steel prices that is driving imports in these product categories.
OCTG (oil country tubular goods) imports also rose sharply last month. OCTG demand has been boosted by the uptick in energy exploration. U.S. Steel’s (X) tubular segment produces OCTG products.