Canada adds ‘melt-and-pour’ requirement for steel imports

The new requirement comes after the government began seeking public comment on the issue in 2022.

At present, importers have the option to begin reporting the data. This is part of the government’s phased-in approach to ensure a smooth transition to mandatory reporting in the fall, it said.

“Canada is implementing a predictable and transparent process for collecting melt-and-pour information, which will bring more reliability and resiliency to the North American steel supply chain,” commented Mary Ng, Canada’s Minister of Export Promotion, International Trade and Economic Development.

The government noted that the US is the only other country at present that collects data on the country-of-melt origin.

Steel industry response

Canada’s steel industry welcomed the announcement.

“As Canada’s steel industry faces significant exposure to global steel excess capacity and unfair trade practices, it is a crucial development that Canada is now requiring this disclosure as a new condition on all steel imports into the country,” the Canadian Steel Producers Association (CSPA) said in a statement.

CSPA said the new requirement will allow for greater transparency and accountability in steel trade, and “support efforts to prioritize the use of cleaner steels throughout North American supply chains.”

Additionally, it will better align Canada’s trade monitoring system with the US’ system, CSPA said.

A spokesperson for Algoma Steel told SMU their views on this matter are in line with CSPA’s. Algoma CEO Michael Garcia sits on the CSPA board executive committee.

Stelco’s CEO Alan Kestenbaum called the new melt-and-pour standard a “major win for the steel industry” in Canada.

“I believe we’re going to have a very significant benefit from this,” Kestenbaum stated on the Canadian steelmaker’s quarterly earnings call on Thursday.

He said the requirement will likely reduce customers’ appetite for imports as the inconvenient, added step and the risks associated with importing, such as long lead times, will outweigh the “relatively small financial benefit” that imports provide.