Steel figures signal caution in US market

Steel production and import figures in the United States portray a domestic steel industry this year that is struggling to match the 2022 pace of output or consumption.

In July, steelmakers in the U.S. shipped 7.55 million tons of product, a 1.6 percent decrease from the more than 7.67 million tons shipped in July 2022, according to the Washington-based American Iron & Steel Institute (AISI).

Year to date, domestic steel shipments of more than 51.86 million tons represent a 3.3 percent decrease from the 53.65 million tons shipped in the first seven months of 2022.

Offering better news, AISI also has reported in the week ending Sept. 2, mill production in the U.S. of nearly 1.73 million tons increased by 1.2 percent from the nearly 1.71 million tons made in the comparable week in 2022.

Year to date, however, mill output through Sept. 2 was about 59.84 million tons, which is down 1.8 percent from the more than 60.9 million tons made in the same time frame in 2022.

As well, the U.S. mill capability utilization (capacity) rate has averaged 76.0 percent so far this year. That is a 4.6 decrease from the 79.7 percent average capacity rate in the first eight months of 2022.

Whether for market or government policy reasons, U.S. Commerce Department data show domestic steelmakers have claimed a larger share of the overall market so far this year.

Commerce Department Steel Import Monitoring and Analysis (SIMA) figures indicate steel import permit applications for the month of August for about 2.21 million tons of shipments equated to a 3.2 percent decrease from the more than 2.28 million tons brought in last August.

Year to date after eight months, total (finished and semifinished) steel imports of slightly more than 19.59 million tons is down 10.9 percent from the same period in 2022. AISI says the estimated finished steel import market share in August was 21 percent while year to date it is 22 percent.

The leading exporters of steel to the U.S. so far this year, according to AISI, are Canada (4.7 million tons), Mexico (more than 2.9 million tons) and Brazil (nearly 2.7 million tons).

In the scrap market, the relatively stable steel output level has in much of 2023 created an equally stable ferrous scrap price. While export markets can help lift prices in a static domestic market, leading export destination Turkey is having a down year, as are, to some extent, Bangladesh and Pakistan. India has emerged in 2023 as one of the only major destinations likely to buy larger amounts of exported U.S. scrap this year