US steel imports (including semi-finished steel) crossed 30 million tonnes (mn t) in CY’21 for the first time in three years, as per a Japan Metal Daily report.
Keeping in view the growing global steel market sentiments, it is expected that imports into the United States will increase towards the second half of CY’22 and total volumes could be higher by 10 mn t from that of CY’21.
It may be recalled that the previous Trump government had imposed 25% tariffs on imports of steel products under Section 232 of the Trade Expansion Act of 1962. However, the present Biden government is reviewing the law to ease imports from the European Union and Japan. However, the increase in imported steel products may invite new trade measures such as anti-dumping in the future.
HRC prices touch record highs
Hot-rolled coils (HRCs) prices in the US touch record high levels last year on the back of robust demand. After the imposition of 25% steel import tariffs, the country’s steel demand surged, leading to a drastic rise in HRC prices.
US hot-rolled coils prices reached the all-time high levels of about $2,000/t last year. Currently, prices are hovering in the range of $1,550-1,600/t.
Outlook
Imports of steel products especially from South Korea, Taiwan and Vietnam are increasing. It seems that these countries will keep exports to the United States strong on higher price realisations compared to the Asian region.
Meanwhile, in response to the rising demand, US steel makers are planning to increase their capacity which could limit their imports. Furthermore, Japanese steel traders are less optimistic about steel exports to USA even after the revision of Section 232 tariffs.
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