AIIS Statement on September 2014 Steel Exports

Exports dipped 1.4 percent from August to 1.03 million net tons. As usual, Canada and Mexico accounted for nearly 90 percent of all U.S. steel exports, with 557,954 net tons going north of the border – a 3.3 percent decrease from August and a 5.8 percent drop from September 2013 – and 352,869 net tons going south, which was down 2.2 percent from August but up 11.1 percent from a year earlier. Among other trading partners, exports to the European Union dropped 23.4 percent from August to 23,586 net tons (down 12.1 percent from September 2013), while exports to Colombia increased nearly six-fold from August (and more than doubled from the previous September) to total 14,803 net tons.

Steel exports are down 6 percent for the year, with the total through the first nine months of 2014 reaching 9.15 million net tons. Year-to-date exports to Canada are down 4.6 percent to 4.9 million net tons, while exports to Mexico are up 3.7 percent to 3.13 million net tons. The E.U. bought 15.2 percent less steel from the U.S. this year – 253,260 net tons. Venezuela has shown the biggest percentage increase, with exports to that country rising more than 84 percent to 49,527 net tons, while Panama has had the largest decline, a nearly 86 percent drop to 11,456 net tons.

The reason for the downward trend in steel exports this year is hard to pin down. Economic conditions in the importing countries certainly have a big role. The International Monetary Fund, for example, has projected that among advanced economies, the weakest economic expansion in 2015 will be in the Eurozone. And, of course, competition in the global market also plays a significant role. As economies around the world – especially in Canada and Mexico – strengthen, and demand for steel increases, one would expect that exports from the U.S. would grow, especially given the advantages provided by the North American Free Trade Agreement. Exports would also be helped by completion of the Transatlantic Trade and Investment Partnership negotiations, which would lower trade barriers between the U.S. and the E.U.

The American Institute for International Steel is the only steel-related association that supports free trade. The Institute accomplishes its mission through advocacy, networking, communications, and education.

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{amchart id=”107″ Total Exports- All Products, Monthly, Net tons}