US Steel Imports

In 2017, the US imported 34.5 million metric tons of steel mill products from several countries including Canada 16%, Brazil 14%, Korea 10%, Mexico 9%, Turkey 8%, Japan 5% and other 40%.  The 34.5 million metric tons is divided by Semi-Finished 23%, Long Products 19%, Pipe and Tube 22% and Flat Products 36%.

Steel Industry Executive Summary: February 2018 Highlights

· From November to December 2017, U.S. imports of steel mill products decreased 11% to 2.2 million metric tons from 2.5 million metric tons.

· In December 2017, capacity utilization was estimated at 71.9%, a decrease of 1.4 percentage points from 73.3% in November.

Overall capacity utilization in 2017 averaged 73.9%, up from the 2016 average of 70.5%.

· Total U.S. steel production in 2017 increased to 81.6 million metric tons from 78.5 million metric tons in 2016, a 3.4% increase.

Trade – U.S. Imports of Steel Mill Products

From November to December 2017, U.S. imports of steel mill products decreased 11% to 2.2 million metric tons from 2.5 million metric tons.

December 2017 steel imports were down 9% from one year ago and down 11% from the 2016 average monthly volume of 2.5 million metric tons.

Steel mill imports in December were down 45% from the most recent high import volume peak of 4 million metric tons in October 2014.

January 2017 license data suggest an increase in imports from December. Note: Import license data, indicated in a different color in the graph below, are not official U.S. Census data, reflect a rolling total of licenses received in the most recent two months, and are subject to change.

Prices

Benchmark domestic steel prices have been relatively flat in recent months after gains in the first quarter of 2017.

U.S. domestic prices for hot-rolled band increased to $736 per metric ton in January 2017. Compared to one year ago, the price for hot-rolled band was up 6.7 percent.

Cold-rolled coil prices increased to $911 per metric ton in January, a 1.1 percent increase from last year, while standard plate prices decreased to $840 per metric ton, a 12.4 percent increase from a year ago.

Monthly U.S. Crude Steel Production

Global steel production increased by 1.1% to 138.1 million metric tons in December 2017 from 136.5 million metric tons in November 2017.

Global production in December 2017 increased 3% from one year ago.

Total world crude steel production in 2017 increased by 5.3% from the 2016 level of 1.6 million metric tons.

China’s December 2017 production level increased by 1.4% from November 2017 to 67 million metric tons.

China’s total production in 2017 amounted to 845 million metric tons, a 4.7% increase from the previous year.

The European Union 28 remains the second largest producer, behind China, with December 2017 production level of 13.6 million metric tons, a 2.3% decrease from 14 million metric tons in November 2017.

https://enforcement.trade.gov/steel/license/documents/execsumm.pdf

Comments

So, if the US produces 81.6 million metric tons of steel and still imports 34.5 million metric tons of steel, then, we need to increase US steel production by 42% to make all the steel we use.  But it isn’t that simple. There are lots of formulas for steel and lots of different specifications and lots of buyers and sellers. 

Also, technology has changed since World War II and auto manufacturers use more plastic than steel, because steel rusts. But steel can be coated to not rust.  Also, we have composite materials that have replaced traditional building materials, like concrete fiber board and composite replacements for wood. We no longer use steel culverts that last for 25 years for drainage, because we now have composite material pipes that last over 100 years.

Building a bridge or a skyscraper requires structural steel that should be coated and we should be able to produce all the steel we need for these.

Construction and farm equipment still uses steel and we should be able to produce steel for US manufacturers.

When it comes to steel parts for appliances and other devices, we need to see if some of this can be exempted.

Norb Leahy, Dunwoody GA Tea Party Leader