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2004
Imports Rose 55%, Prices Still High
The United States imported a total of 35,662,000 net tons of steel
in 2004, including 28,304,000 net tons of finished steel, according
to Census Bureau data. Imports in these categories increased 54.2
and 54.6 percent, respectively, compared with 2003.
The
2004 percentage gain for finished steel imports was more than three
times the 15.9 percent increase in steel consumption last year.
As a result, the market share for finished steel imports rose from
16 to 21.2 percent.
Compared
with 2003, imports last year were at substantially higher levels
in almost every major product line, including hot-rolled sheet,
which was up 83 percent, according to the American Iron and Steel
Institute, Washington, D.C.
“Imports in 2004 were up dramatically, and there is sufficient
availability of steel in the U.S. market,” comments John P.
Surma, chairman of AISI and president and CEO of U.S. Steel Corp.
The
Census Bureau released average import customs value on selected
steel products. In December, cut-length plate came in at $970 per
ton, a 161 percent increase over the 21-year average price realized
between 1980 and 2000.
Hot-rolled
sheet imports came in at $586 and cold-rolled at $843 per ton, increases
of 97.4 and 76.1 percent, respectively, over the 1980-2000 average
price. Hot-dip galvanized sheet and strip came in at $699, or 40.6
percent over average prices in that period. The imported structural
shape price, at $589 a ton in December, was 76 percent higher than
the 1980-2000 average price.
Members
of the Precision Metalforming Association worry that imports are
not meeting the shortfalls or relieving the delivery delays they
continue to experience when buying domestic steel. Although higher
year over year, December was the third consecutive month during
which import volume declined.
“Hot-rolled
sheet imports declined by 42 percent from November levels, and December’s
imports were at the lowest level since April 2004,” PMA President
William E. Gaskin says. “If this trend continues, metalforming
companies can expect a reversal of the recent mild easing of the
availability crisis and could begin to experience increased difficulties
obtaining the steel they need at competitive prices.”
According
to PMA’s December Steel Report, 64 percent of respondents said
they received only partial shipments of steel they expected to receive
in December, and 79 percent experienced late shipments. More than
half of survey participants said the current steel marketplace is
significantly to critically disrupting their businesses.
MSCI:
Steel, Aluminum Shipments
Slip During November
U.S. members of the Metals Service Center Institute shipped 4,316,200
tons of steel during November, a 3 percent decline from October,
but 7.6 percent above November 2003 shipments.
Average
daily shipments of 205,500 tons were 3.3 percent below October,
and 2.6 percent below the November 2003
average.
In
aluminum products, U.S. members shipped 90,500 tons during November,
4.7 percent below October but 21.8 percent above the total tons
shipped in November 2003. Average daily shipments of aluminum products
were 4,300 tons, down 4.4 percent from October but up 10.2 percent
from November 2003.
From
January through November, U.S. members of MSCI shipped 51,785,500
tons of steel, or 13.7 percent greater volume than during the same
period of 2003. Year-to-date aluminum shipments totaled 1,025,300
tons, a 16.7 percent improvement over the same period of 2003.
U.S.
MSCI members were holding more inventory during November. In steel
products, inventories reached 15,466,900 tons, or 3.6 months on
hand, compared with 3.5 months on hand during October and 3.3 months
on hand in November 2003. In aluminum products, U.S. members held
340,700 tons, or 3.8 months on hand, the same rate as November 2003
but higher than the 3.6 months of inventory on hand during October.
In
Canada, MSCI members shipped 471,800 tons of steel in November,
a strong rebound of 12.7 percent from October, but level with November
2003. Average daily shipments improved 7.6 percent from October
but were down 10 percent from November 2003.
Year
to date, Canadian members shipped 5,134,500 tons of steel, the same
as in 2003. Steel inventories actually declined in November to 2.5
months on hand, compared with 2.7 months in October.
MSCI’s
Canadian members shipped 9,300 tons of aluminum products during
November, and 102,800 tons year to date, increases of 9.4 percent
month over month and 6.8 percent year over year. Aluminum inventories
stood at 3.1 months on hand, down from the 3.2 months in October
and even with the November 2003 inventory level.
AISI:
Domestic Steel Shipments
Up 7.6% Through November
U.S. steel mills shipped 9,032,000 net tons during November, a 6.4
percent increase from the 8,485,000 net tons shipped in November
2003, but 3.2 percent below the 9,326,000 net tons shipped in October
2004, reports the American Iron and Steel Institute.
For
the first 11 months of 2004, steel shipments totaled 103,797,000
net tons, representing a 7.6 percent increase from the 96,509,000
net tons shipped during the same period in 2003.
A
year-to-year comparison of year-to-date shipments shows the following
changes among major buyers: service centers and distributors, up
5.5 percent; automotive, up 5.6 percent; construction and contractors’
products, up 6.9 percent; oil and gas, up 12.3 percent; machinery,
industrial equipment and tools, up 19.2 percent; appliances, utensils
and cutlery, up 4.2 percent; containers, packaging and shipping
materials, down 0.5 percent; and electrical equipment, down 6.5
percent.
IISI:
Global Steel Production Grew 8.8% in 2004
World crude steel production totaled 1.05 billion metric tons during
2004, an 8.8 percent increase over 2003 global production, according
to the International Iron and Steel Institute, Brussels, Belgium.
Sixty-two countries report their monthly and annual output through
IISI.
China
was by far the largest producer last year, with 272.5 million metric
tons, which was 23.2 percent more than it produced during 2003.
China accounted for 25.8 percent of all crude steel produced last
year.
Japan
was the second largest steelmaker, with 112.7 million metric tons,
a 2 percent rise over 2003. The United States increased production
5.2 percent to a total of 98.5 million metric tons. The rest of
the top 10 producing nations were Russia, South Korea, Germany,
Ukraine, Brazil, India and Italy, all of which grew their output
between 2.5 and 5.7 percent last year, compared with 2003.
Turkey’s steelmaking during 2004 totaled 20.5 million metric
tons,
an 11.9 percent increase from 2003, bringing it to No. 12 among
producing nations.
CBSA:
Red Metals Shipments
Rise 10.3% Year Over Year
In spite of a downturn in shipments during December, total 2004
shipments by members of the Copper and Brass Servicenter Association,
Wayne, Pa., exceeded the 2003 level by 10.3 percent. The red metals
market saw year-over-year gains in all product categories except
“other alloy sheet,” which declined less than 2 percent.
Overall,
total copper shipments for 2004 were up 11.4 percent and alloy shipments
grew 9.7 percent. The major product categories showing the best
year-over-year gains were copper rod and bar, up 16.3 percent; 300
series alloy rod and bar, up 13.5 percent; and “all other alloy
rod and bar,” which increased 21.9 percent.
PMA:
Activity, Orders to Rise
Metalforming companies expressed optimism about business conditions
during the first quarter of 2005, according to the Precision Metalforming
Association’s survey of 159 metalforming companies in the United
States and Canada, conducted in January.
When
asked whether they anticipated that general economic activity would
increase, decrease or remain the same over the next three months,
48 percent of respondents reported that they expect business conditions
to improve (up from only 33 percent in December), 38 percent thought
that activity would remain the same (vs. 50 percent in December)
and 14 percent said it would decrease (vs. 17 percent in December).
Metalformers
also expect incoming orders to rise during the next three months,
with 52 percent anticipating an increase in orders (up from 38 percent
inDecember
and at the highest level since May 2004). Thirty-five percent forecast
no change (compared to 42 percent in December), and only 13 percent
predicted that orders would decrease over the next three months
(down from 20 percent in December).
Reported
average daily shipping levels remained steady, with 32 percent saying
that current levels are above those of three months ago (compared
to 29 percent in December). Forty-three percent reported no change
(down from 46 percent a month earlier) and 25 percent indicated
shipping levels in January were below levels of three months ago
(even with December).
The
number of metalforming companies with a portion of their
workforce on short time or layoff remained unchanged in January
at 18 percent.
Briefs
The Institute for Supply Management’s Steel Buyers Forum has
high hopes for the next three months in terms of incoming orders,
according to a Feb. 1 survey. Seventy-four percent of buyers surveyed
expect their orders to increase, or remain steady, compared with
65 percent a month earlier and from less than half in October. Selling
prices for the products sold by these buyers remain on favorable
ground with ratings of “firm” or “competitive”
at 84 percent, compared with 70 percent the previous month. Buyers
are destocking: The February report shows that 37 percent of respondents
have greater
than 10 percent more tons on hand than 12 months ago, down from
50 percent
in January. Yet, 47 percent of steel buyers still report their inventories
are too high.
U.S.
primary aluminum production totaled 2,516,864 metric tons last year,
a 6.9 percent decline from the 2,704,495 tons produced during 2003,
reports
the Aluminum Association, Washington, D.C.
The
Ports of Indiana moved 7.6 million tons of cargo across their docks
in 2004, a 35 percent increase from 2003. This was the highest annual
tonnage volume for Indiana’s three-port system since 1998,
surpassing every year since 1998 by more than 1 million tons and,
in some cases, more than 2 million tons. Overall, Indiana’s
ports saw significant increases over last year in steel, up 88 percent,
and coal, up 52 percent, among other cargos.
The
Mount Vernon port handled 3.4 million tons in 2004, which is more
than 1 million tons, or 45 percent, ahead of 2003. Last year, Mount
Vernon handled 102,000 tons of steel, up 151 percent from 2003.
Coal shipments finished 614,000 tons ahead of 2003, up 53 percent.
The
port at Burns Harbor set a new record in 2004 with 154 ship calls,
shattering the previous record of 144 set in 1977. Burns Harbor
saw increases in all major cargos, including steel, up 73 percent.
The
Jeffersonville port last year saw steel shipments increase 118 percent.
Rail shipments through the port totaled 1.6 million tons, about
840,000 tons of which was steel. More than half of the railcars
carried steel.
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