U.S. Steel Imports Decline in February, Defy Prediction in the Months Ahead

Steel import permit applications for February totaled 2,274,000 net tons—a 24.5% decrease from the 3,013,000 permit tons recorded in January and a 25.3% decrease from the January final imports total of 3,044,000. Import permit tonnage for finished steel in February was 1,759,000, down 22.8% from the final imports total of 2,279,000 in January, reported the American Iron and Steel Institute, based on the latest Commerce Department data.

As of the end of February, steel prices in the U.S. had declined by nearly 50% from record highs last year to levels where foreign mills no longer had a price advantage. Steel Market Update pegged the benchmark price for hot rolled coil on March 1 at $1,000 per ton. Most buyers have been in an inventory-reduction mode for the past few months, postponing purchases as they waited to see how low prices would go. Thus many have reduced orders from mills, both domestic and foreign. Therefore, the decrease in imports in February comes as no surprise.