What investors must know about US steel imports (Part 8 of 15)
Steel imports rise
We’ve seen steel imports rise by ~35% in the first ten months of the current year. However, there are certain product categories that have seen a much higher increase in imports. Let’s take a look at some of these product categories.
The above chart shows the increase in steel imports in major steel products. The data are for the first ten months of the current year. Steel companies such as Nucor (NUE), Commercial Metals Company (CMC), ArcelorMittal (MT), and U.S. Steel Corporation (X) produce these products. Some of these companies are part of the SPDR S&P Metals and Mining ETF (XME).
Steel imports by products
Imports of wire rods, plates in sheets, and cold-rolled (or CR) sheets have increased by more than 80% on a year-over-year basis. Imports of plates cut in lengths have increased by 70% year-over-year. Please be aware that plates are used in construction, shipbuilding, and industrial machinery. They can either be imported as sheets or by cutting them into specific lengths according to customer specifications.
The imports of bloom billets and slabs have increased by more than 50% year-over-year. Imports of heavy structural steel have also increased by ~56% year-over-year. These products are mainly used in the construction industry. China specializes in producing heavy structural steel. This is because of growth in China’s infrastructure in recent years.
To find out more, you can read how a slowdown in China impacts US steel plays .
OCTG imports
Oil country tubular goods (or OCTG) imports have increased by ~20% year-over-year. This is less than the increase in total steel imports in the United States. OCTG imports are always in the news. We’ll discuss the importance of OCTG products for the US steel industry in our next part.
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