Steel import permit applications totaled 2,684,000 net tons for the month of September according to the latest report from the American Iron and Steel Institute (AISI).
The AISI report, which is based on the Commerce Department’s most recent Steel Import Monitoring and Analysis (SIMA) data, shows that the total represents a 9% increase from the 2,460,000 permit tons recorded in August 2008, and a 14% increase from the August preliminary imports total of 2,346,000 net tons.
The report also shows that the September import permit tonnage total included 2,279,000 net tons of finished steel, a 16% increase from the preliminary imports total of 1,958,000 net tons in August.
Total YTD steel imports for the first nine months of 2008 (including September SIMA and August preliminary) were 23,869,000 net tons, down 9% from the 26,144,000 net tons imported in the first nine months of last year. Total steel imports for 2008 would annualize at 31.8 million net tons, or 4% below the 12-month total for 2007.
For September 2008, the largest finished steel import permit applications for offshore countries were for China (594,000 net tons), South Korea (221,000 net tons), India (142,000 net tons) and Japan (128,000 net tons). Chinese steel permit tons set a new high for 2008 for the second consecutive month, mainly because of a record monthly amount of import permits for Oil Country Goods from China. They exceeded the previous monthly high this year (495,000 net tons in August) by 20%, and were 23% higher than China’s preliminary imports in August. This was the largest monthly total for Chinese steel since October 2006.
Product categories that increased in September vs. the August preliminary include
- Oil Country Goods, +56%
- Hot Dipped Galvanized Sheet & Strip, +51%
- Cold Rolled Sheets, +38%
- Line Pipe, +35%
- Standard Pipe, +23%
- Hot Rolled Sheets, +22%
Import product categories with significant increases year-to-date vs. 2007 include Oil Country Goods (+59%) and Line Pipe (+10%).
“The trend with respect to China is of particular concern,” said AISI President and CEO Thomas J. Gibson, commenting on the import situation. “Imports of Chinese finished steel were more than 70% higher in the third quarter than in the second quarter and, for September, represented more than a quarter of all U.S. imports of finished steel.
“Regarding surging imports of Oil Country Goods from China, it is worth stressing once again that the Chinese government is continuing to provide a 13% rebate on its exports of this high value product,” added Gibson.
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. The institute comprises 27 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.