US steel imports fell by more than 5mn metric tonnes (t) in 2019 to their lowest levels since 2010, reflecting the impact of the Section 232 tariff that went into effect the prior year.
Steel imports fell by 17pc to 25.3mn t in 2019 compared to 30.6mn t in 2018, according to preliminary figures released by the US Department of Commerce today. Imports of steel products totaled 34.47mn t in 2017.
The last year that volumes fell below 2019's volumes was in 2010, when imports were 21.7mn t as the US economy recovered from the Great Recession.
The products with the largest import declines last year were blooms, billets and slabs, hot-rolled coil (HRC), cold-rolled coil (CRC), galvanized sheets and oil country tubular goods (OCTG).
Preliminary imports for December totaled 1.4mn t, down by 18pc compared to the same month of 2018 and near the 10-year low of 1.4mn t recorded in November.
The product with the steepest import volume declines in December were line pipes with a width greater than 16 inches, which fell by 76pc to 33,600t. Imports of HRC fell by 10pc to 150,000t, while galvanized sheet imports fell by 20pc to 143,000t.
While steel product imports fell last year, US steel industry production increased by 1.5pc to 96.9mn st according to data from Worldsteel, an international industry organization.
The Trump administration on 24 January, citing steel mill capacity utilization rates, added certain steel and aluminum products to its 25pc Section 232 steel tariffs that it originally imposed in March 2018. The administration said it wants to maintain utilization rates above 80pc for an extended period in order to consider removing the tariffs.
US steel capacity utilization averaged 80.7pc in 2019, and was estimated to be at or above 80pc for 37 weeks during the year, according to industry group American Iron and Steel Institute (AISI).
The administration plans to add the 25pc steel tariffs to imports of steel bumper and body stampings for motor vehicles and tractors. Imports of those products increased by 38pc from June 2018 to May 2019 compared to the same period in the previous year.
Other products that will be tariffed include steel nails, tacks, drawing pins, corrugated nails, staples, and similar items. Imports for those increased by 33pc from June 2018 to May 2019 compared to the same period in the previous year.
