November 22, 2008

US steel import permit in June up by 1% MoM

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of June totaled 2,533,000 net tons. This was a 1% increase from the 2,514,000 permit tons recorded in May 2008 and a 3% increase from the May preliminary imports total of 2,451,000 net tons.

Import permit tonnage for finished steel in June was 2,075,000 net tons an increase of 4% from the preliminary imports total of 1,998,000 net tons in May.

For the first six months of 2008 including June SIMA and May preliminary, total steel imports were 15,684,000 net tons down 12% from the 17,822,000 net tons imported in the first half of last year. Total steel imports for 2008 would annualize at 31.4 million net tons or 6% below the 2007 12-month total.

For June 2008, the largest finished steel import permit applications for offshore countries were
1. China 359,000 net tonne
2. Korea 196,000 net tons
3. Japan 130,000 net tons
4. Germany 107,000 net tons
5. Taiwan

Finished steel import permit applications for China increased 25 percent in June compared to May preliminary imports and were the highest monthly total since August of 2007.

Product categories that increased in June vs. May preliminary include:
1. Wire Rods up by 48%
2. Hot Rolled Bars up by 40%
3. Standard Pipe up by 41%
4. Oil Country Goods up by 21%
5. Line Pipe up by 16%.

Products that showed a significant year to date increase vs. 2007 include:
1. Oil Country Goods up by 25%
2. Line Pipe up by 16%

Mr Andrew G Sharkey, III president & CEO of AISI said that “Concerns remain about dumped and subsidized imports of certain products from certain countries, notwithstanding the decline in overall imports through June. One such concern is tubular products from China, which are continuing at high levels in the U.S. market and still receiving export tax rebates from the government of China.”