WASHINGTON: The U.S. steel industry upped its production levels during the week ending July 22. In total, U.S. raw steel manufacturers produced 1.77 million net tons for that week, according to weekly data from the American Iron and Steel Institute (AISI). Compared with the previous week (ending July 15), that figure makes for a 0.6% increase. Meanwhile, compared with the same week in 2016, production was up 6.4%.
Production is also up when comparing the year to date (until July 22) with the same time frame last year. Thus far in 2017, U.S. steel amounts to 50.3 million net tons, a 2.5% increase from the 49.1 million net tons in 2016. The weekly AISI report also breaks down production by region. Once again, the Great Lakes region came in first with 677,000 net tons, followed by the Southern region (637,000), Northeast (214,000), Midwest (166,000) and Western (79,000). Of course, the elephant in the room continues to be the Section 232 investigation into steel imports. The results of the Department of Commerce probe were expected to be announced by the end of June, but that has long come and gone.
Most have speculated that the administration will opt to slap tariffs on steel imports in an effort to combat excess capacity from China. It remains to be seen when the administration will announce anything on Section 232. However, if tariffs come to pass, other steel-producing nations will likely have something to say about it. As reported yesterday, Kosei Shindo, chairman of the Japan Iron and Steel Federation, warned of the opening of a Pandora’s box — meaning, nations might retaliate by placing tariffs on other products. That is on top of comments made in June by European Commission Trade Commissioner Cecilia Malmstrom regarding the EU’s intent to retaliate in the face of U.S. steel tariffs.
According to preliminary data from the U.S. Census Bureau, the U.S. imported 3.1 million tons of steel, with a monetary value of about $2.6 billion. The preliminary May data show Canada leading the way in steel exports to the U.S. (514,488 tons). Mexico shipped 266,544 tons, while Germany (135,279), Turkey (139,728), Korea (298,527) and Brazil (513,889) featured near the top of the list. China, meanwhile, exported 73,594 tons, according to the preliminary May data.