US imports of steel increased in July over June, representing the first month-over-month increase of 2009, led by increased imports of semi-finished products which increased by over 96 percent in July, the latest preliminary import data show.
Total steel imports by the US in July 2009 were 984,000 nt, compared to 862,000 nt in June 2009, a 14.2 percent increase month-on-month, and a 66.2 percent decrease from July of 2008. Imports of semi-finished steel (ingots billets and slabs) saw the most significant increase in July over June, rising from 50,545 nt in June (based on final data) to 99,154 nt in July (based on preliminary data). Finished steel imports also increased in July over June (comparing the July preliminary to June final), but by a narrower 9.1 percent.
“The increase in imports reflects the tentative improvement in the steel market this summer,” said David Phelps, president of the American Institute for International Steel (AIIS) in the organization's assessment of the July import data. “With steel producers from Canada and Mexico reacting as quickly to improved market conditions as domestic producers, their exports to the US represented over 50 percent of the increase in tonnage in July. With some domestic steel companies plans to restart their furnaces delayed, imports of semi-finished products were critical to their ability to service the improved market and therefore semis posted the largest product increase in July compared to June."
Phelps concluded, “These data show that the US steel market is finally beginning to emerge from the recession. Of course the big question, still unanswered, is whether the improvement in the US market is merely a re-stocking of inventory or reflects real improvement in demand and can be sustained.”
According to year-to-date figures for the first seven months of the year, the amount of steel imported by the US decreased 49 percent compared to 2008 or from 18.9 million nt in 2008 to 9.6 million nt in 2009. The data show that imported semi-finished products decreased by 85 percent in July 2009 as compared to July 2008. For the YTD period, semi-finished imports decreased from four million nt in 2008 to 667,000 nt in 2009, an 83.1 percent decrease, based on preliminary reporting.