Steel import license data released by the US Department of Commerce's Steel Import Monitoring and Analysis (SIMA) system data show that steel import permit applications for the month of June totaled 734,667 mt, which is down by 21 percent from the preliminary steel import total for May, and puts June on track to be another record-low month for
US steel imports.
The product which saw the most significant decrease in the June license data vs. May preliminary data was oil country
tubular goods, which dropped from 128,799 mt in May (preliminary) to 25,486 mt in June (license).
While import permits for most finished steel import products that registered decreases in the June license data vs. May preliminary data, a few products saw increases. These products are: standard rails (up 76 percent),
wire rods (up 53 percent), heavy structural shapes (up 46 percent) and line
pipe (up 12 percent). Semi-finished steel products (blooms, billets and slabs) also increased in June over May, from 10,185 mt in May to 19,872 mt in June.
SIMA's monthly steel fact sheet for May, released last week, showed a preliminary import total of 924,996 mt, which represented a 17.1 percent decrease from April 2009 and a 59.2 percent drop from May 2008. According to the American Institute for International Steel (AIIS), the last time steel import volumes were this low was in April 1976.
AIIS president David Phelps commented on the May import data, “Imports at this level show that steel distributors and consumers were continuing to shed inventory early this year, replacing steel needed with small mill purchases and trades between other service centers and not risking larger import buys.”
“Indications are from the AIIS monthly importers’ survey that some long products are starting to see some improvement, although from very low levels,” concluded Phelps.