Features

March exports ease 5% from previous month's high
Written by Brett Linton
May 7, 2024
US steel exports eased through March but remain healthy, having reached a six-month high in February. The latest US Department of Commerce data shows 794,000 short tons (st) of steel were shipped out of the country in March, down 5% from February. Exports have had a strong start to 2024, jumping 25% month on month (m/m) in January and another 9% in February.

Monthly averages
Looking at exports on a 3-month moving average (3MMA) basis can smooth out the monthly fluctuations. Shipments had trended downward throughout the second half of 2023, falling to an 11-month low in December. The 3MMA changed course as it entered this year, rising each month since. The latest 3MMA through March is up to 802,000 st, an 8% increase from February and now at a six-month high.
Exports can be annualized on a 12-month moving average (12MMA) basis to further dampen month-to-month variations and highlight historical trends. From this perspective, steel exports have steadily trended upwards since bottoming out in mid-2020. The 12MMA reached a five-and-a-half-year high in February. In March, this measure declined slightly to 798,000 st but remains very strong historically.

Exports by product
Exports of most major flat-rolled steel products were flat to down in March. The biggest monthly mover was hot-rolled sheet (-28%), reversing the gains seen in February. Declines were also seen in other metallic coated products and plate cut lengths. Galvanized exports increased m/m to the second-highest level seen over the past seven months. Exports of cold-rolled and coiled-plate products were relatively flat m/m, with coiled-plate shipments hovering at the second-highest level seen in the last eight months.
March exports are 10% lower than levels one year prior. Notable year-on-year (y/y) decreases were seen in exports of plate cut lengths, other metallic coated, and hot rolled.

On a 3MMA basis, all but one of the steel product exports we track saw increases from February to March. The largest movers were coiled plate (+12%), other metallic coated (+11%), and galvanized (+10%).

Note that most steel exported from the US is destined for USMCA trading partners Canada and Mexico. Out of all exports, 50% in March went to Mexico, followed by 44% to Canada. The next largest recipients were Brazil and China at less than 1% each.

Brett Linton
Read more from Brett LintonLatest in Features

Leibowitz: The blowback from Trump’s ‘Liberation Day’ tariffs has only just begun
Tariffs are taxes that the government collects. Funds are disbursed by acts of Congress. If domestic companies, including manufacturers, are to benefit from “protective” tariffs, they must raise their prices as well. Maybe not by the entire amount of the tariffs, but by some. Inflation will come.

SMU Week in Review: March 31 – April 6
The constant flow of information we all receive can be a little overwhelming, but SMU is here to help with a snapshot of the week.

SMU Steel Survey: Sentiment Indices dip as buyer optimism softens
SMU’s Buyers’ Sentiment Indices experienced multi-point declines this week, though both remain positive and continue to reflect optimism among steel buyers for their companies' ability to be successful.

SMU Scrap Survey: Current Buyers’ Sentiment flat, Future Sentiment tumbles
SMU's Current Scrap Buyers' Sentiment Index remained flat this month, while the Future Sentiment Index declined.

Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them