WASHINGTON: American steel mills shipped 7 million net tons of steel in January, a 7.2 percent increase over December. However, the amount of steel shipped out, or what’s actually sold, was down 9.4 percent as compared to the 7.7 million net tons shipped in January 2015, according to the American Iron and Steel Institute. Shipment data always gets released more than a month later, since it takes time to compile.
Hot-dipped galvanized sheets were up 13 percent in January over December, while cold rolled sheets were up 12 percent. Hot-rolled sheets rose 2 percent. The month-to-month increase coincides with a sharp drop in imports, which captured a record 29 percent market share in the United States last year. Trade cases and new legislation to strengthen enforcement at the ports have helped lead to a 40 percent drop in imports so far this year, according to the American Iron and Steel Institute.
Imports, which caused widespread layoffs and mill idlings last year, now only have about 23 percent of the market share in the United States after domestic steelmakers filed three trade cases against imports of hot-rolled, cold-rolled and corrosion-resistant steel from multiple countries. Congress also passed laws that empowers U.S. Borders and Customs Agents to investigate steel dumpers who duck tariffs and that let the federal government use more economic data so it can take action quicker.
Congressman Pete Visclosky, D-Indiana and Sen. Joe Donnelly, D-Indiana, have been calling for vigorous enforcement at U.S. ports now that the new laws are in place. Local steel production has climbed in seven out of the 10 weeks that have ended so far in 2016. Output in the Great Lakes region plunged as low as 555,000 tons last year, but was at a much healthier 631,000 tons last week.
