What investors must know about US steel imports (Part 6 of 15)
US steel imports
Previously, we saw the trends in indirect steel imports in the United States. Now we’ll analyze the latest trends in direct steel imports. During its 3Q14 earnings conference call, Steel Dynamics (STLD) highlighted this as the single biggest risk for its business. Management for ArcelorMittal (MT), AK Steel (AKS), and Nucor (NUE) share the same view. These companies form part of the SPDR S&P Metals and Mining ETF (XME).
U.S. Steel Corporation (X) has, in fact, hired a legal professional to help it file trade cases against steel imports. Other steel companies generally use the services of third-party attorneys to file trade cases.
To find out more, you can read how Carnegie Way is transforming U.S. Steel Corporation .
Steel imports up 35%
US steel imports reached a record high of ~4 million tonnes in October. This can be seen in the above chart. Compared to last year, steel imports are up by more than 35% in the first ten months of the current year.
Steel imports have increased every month of the current year on a year-over-year basis. October steel imports were up by more than 43% on a year-over-year basis. This is an alarming situation. This basically means that foreign steel companies are enjoying the benefit of the strong steel demand in the United States.
Biggest threat
Steel imports are the single biggest risk for the US steel industry. Therefore, it’s paramount for investors to understand the dynamics of these imports. In the coming parts, we’ll analyze the breakup of steel imports by countries as well as by product type.
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