Slab, galvanized drive US steel import drop

Imports of steel products into the US fell in June because of declines in imports of semi-finished, hot-rolled coil (HRC) and hot-dipped galvanized (HDG) products.

Preliminary June import numbers show overall steel imports fell to 1.84mn t (2.02mn st), a 19pc decline compared to the 2.26mn t imported in June 2018, according to the US Department of Commerce.

The largest decline for the month was in semi-finished blooms, billets and slabs, which combined to fall to 281,800t, less than half the 580,000t imported in June 2018. Other product imports that fell in June were HDG sheets and strip, which fell by 35pc to 161,700t from 249,300t in June 2018. Hot-rolled coil (HRC) imports fell to 121,000t in June, a 21pc decline from 153,300t in June 2018.

Brazil volumes fell by 95pc to 13,800t in June from 253,100t in the same month of 2018. Russian volumes fell to 143,400t, a 40pc decline compared to 239,300t in June 2018.

Turkish volumes for the month fell by 89pc to 8,300t from 72,800t in June 2018, despite the US reducing the tariff on steel imports from the country to 25pc from 50pc in mid-May.

South Korean volumes dropped to 147,500t, a 23pc decline compared to 191,100t in June 2018.

Overall steel product imports through May, the latest final data available from Commerce, declined to 12.32mn t, 12pc lower compared to 13.95mn t of steel imports for the first five months of May 2018. Much of the year-to-date decline is due to falling HRC imports, which fell to 720,700t, a 28pc decline compared to 1mn t in the first five months of 2018. Cold-rolled coil (CRC) sheet imports through May fell by 27pc to 696,400t compared to 951,400t in the same period of 2018. Imports of HDG sheets and strip through May fell to 1mn t, a 17pc decline from 1.2mn t during the same period of 2018.

Steel imports into the US have fallen since the US imposed Section 232 tariffs of 25pc on steel and 10pc on aluminum imports in March 2018. Steel imports into the US from Brazil, South Korea and Argentina were placed under a quota system instead of tariffs following negotiations, while Australia was exempted from both quotas and tariffs.

Steel tariffs of 25pc were imposed on steel imports from Canada and Mexico in June 2018, and were removed in mid-May along with 10pc aluminum tariffs.