Posted on 06 Sep 2024
During July, U.S. imports of steel products from China soared to a 13-month high to reach 71,648 tonnes, according to a report from the U.S. Department of Commerce (DoC) released on September 4.
The surge represented a significant 170% increase compared to July 2023 and a 52.3% rise from June.
In contrast, total U.S. steel imports from all sources in July amounted to 2.2 million tonnes, representing a tiny 2.2% rise from the 2.15 million tonnes cleared through US Customs in July 2023, according to Mysteel Global's calculations based on DoC data.
In May this year, the United States had announced a sharp increase in tariffs on a range of Chinese imports, including steel and aluminum, as reported. Though initially scheduled to take effect on August 1 with the tariffs set to rise from 0-7.5% to 25%, late last month the White House announced a delay, pushing the tariff hike back to sometime in September.
The looming tariff increase most likely contributed to the spike in steel imports from China in July, as buyers rushed to secure supplies before the deadline, a market analyst noted.
Throughout the first half of this year, U.S. imports of Chinese steel remained at relatively low levels, a symptom of sluggish trading activity. This made the sharp rise in July all the more unusual.
During the first seven months of the year, total U.S. imports of steel products from China reached 285,637 tonnes, a 25.6% decline compared to the 383,744 tonnes imported during the same period last year, according to DoC data.
However, the average unit price of China-origin steel for U.S. consumption in July was $1,545/tonne, down from $1,751/t in June, according to Mysteel Global's calculations.
In July, China's steel market weakened due to limited cost support and rising supply. This reduced China's bargaining power in the global market, leading to a decline in average transaction prices, as reported.
Source:Mysteel Global
