Based on reported import licenses, US long products imports fell 14% year-on-year from 331,000 short tons in May 2019 to 286,000 tons in May this year. The decline was mainly due to lower parallel flange sections imports from South Korea, Luxembourg, and Taiwan.
Based on January to April imports and May import licenses, long products imports so far this year were 18% lower than in the same period last year with the largest import volume declines coming from wire rod (-30%), parallel flange sections (-41%), and rebar (-7%).
SIMA US long products import licenses
January 2014 to May 2020
Short tons
“Wire rod production at ArcelorMittal Kryvyi Rih” from Wikimedia Commons by ArcelorMittal Kryvyi Rih / CC BY-SA (https://creativecommons.org/licenses/by-sa/4.0)
In its latest Short Range Outlook (SRO), published June 4th, Worldsteel revised its steel demand growth forecast for 2020 downward due to the Covid-19 crisis. The revision lowered estimated demand growth between 2019 and 2020 from 1.7% in its October 2019 SRO to -6.4% in the June 4th figures.
China accounted for 51% of world steel demand in 2019 and is expected to account for 55% of world demand in 2020 and 53% in 2021. Chinese steel demand is forecast to rise by 1.0% in 2020 and 0% in 2021.
After a 1.5% decline in 2019, steel demand outside of China is expected to fall by 14.2% in 2020 and to rise by 8.6% in 2021. Asia and Oceania demand outside of China is expected to decline by 10.5% in 2020 and rise by 5.6% in 2021. European Union demand is expected to decline by 15.8% in 2020 and rise by 10.4% in 2021. NAFTA demand is expected to decline by 20.0% in 2020 and rise by 6.2% in 2021.
Oxygen converter at ThyssenKrupp facility in Duisburg from Wikimedia Commons by Katpatuka / CC BY-SA (http://creativecommons.org/licenses/by-sa/3.0/)
Based on reported import licenses, US flat products imports fell 20% from 642,000 short tons in May 2019 to 516,000 tons in May this year. Of all flat product categories, hot dip galvanized showed the largest imports decline May-on-May, mainly due to lower volume from Canada. Hot rolled imports also fell significantly compared to last May, again mostly due to Canada, but also due to Germany, Serbia and Egypt.
Based on January to April imports and May import licenses, flat products imports so far this year were 20% lower than in the same period last year with cut plate imports down 45%, hot roll down 18%, cold roll down 18%, and hot dip galvanized down 17%.
SIMA US flat products import licenses
January 2014 to May 2020
Short tons
Rolling process at NLMK Pennsylvania (NLMK Group) from Worldsteel Image Library by worldsteel / Jeff Swensen
Worldsteel reported crude steel production in China at 85.0 million metric tonnes in April, 0.2% higher than in April 2019. Chinese production in the first four months of 2020 was 1.1% higher than in the same period last year.
Data from the General Administration of Customs show Chinese net finished steel exports (exports minus imports) in April were 5.3 million tonnes, 0.4% lower than in April 2019. Net exports on the first four months of 2020 were 15.6% lower than in the same period last year.
China monthly crude steel production
Thousand metric tonnes
Olympic Park Stadium, Daqing, China from Wikimedia Commons by Rilegator
Worldsteel published April world crude steel production today. World steel output was 137.1 million metric tonnes, 13.0% lower than in April 2019. Crude steel production in the first four months of 2020 was 4.2% lower than in the same period last year.
China accounted for a record 62% of world output in April with production of 85.0 million tonnes, 0.2% higher than in April 2019. Asian output outside of China fell 30.9% on last April due to lower production in India (-65.2%), Japan (-23.5%), South Korea (-8.4%) and Taiwan (-16.3%).
European Union crude steel production fell 22.9% on April 2019 with the largest volume declines coming from Spain (-48.0%), Italy (-30.7%), France (37.9%), and Germany (-10.7%). In North America, US production fell 32.5%, Canadian output fell 24.4%, and Mexican production fell 12.1%.
Other countries with significant declines compared to last April include Russia (-19.4%), Turkey (-26.3%), Ukraine (-30.9%), and South Africa (-99.5%).
Hot steel slab being rolled at Nucor Steel Berkley from Worldsteel Image Library by worldsteel / Roger Ball
Based on reported import licences, US long products imports declined 31% from 333,000 short tons in April 2019 to 231,000 tons in April this year. The decline was mainly due to lower wire rod imports, though all other structural shapes imports also declined significantly.
Based on January to March imports and April import licenses, long products imports so far this year were 21% lower than in the same period last year with the largest import declines coming from wire rod (-36%) and rebar (-12%).
SIMA US long products import licenses
January 2014 to April 2020
Short tons
Image of engineers at Folsom Dam Joint Federal Project in Folsom, Calif. from Wikimedia Commons by U.S. Army Corps of Engineers Sacramento District / Public domain
