U.S. steel exports retract in April

U.S. exports of steel fell 5.8 percent in April compared to March and 21.8 percent from the same period last year.    U.S. exports of steel fell 5.8 percent in April for a total of 844,370 net tons, and 21.8 percent below the same period last year, according to the American Institute for International Steel.
   The two largest buyers of U.S. steel reduced their purchases, with exports to Canada dropping 3.7 percent to 407,784 net tons (27.3 percent below the previous April) and exports to Mexico slipping 8.1 percent to 332,061 net tons (9.8 percent less than last April). European Union countries purchased 3.9 percent less U.S. steel than in March at 29,836 net tons. This was 14.6 percent less than a year earlier, AIIS said.
   “Through the first four months of the year, exports are down 11.1 percent at 3.54 million net tons. The decline is almost entirely the result of a 19.4 percent drop in exports to Canada, which total 1.72 million net tons year-to-date. Exports to Mexico, meanwhile, have inched up 2.4 percent this year to 1.38 million net tons, while exports to the European Union have grown 22.2 percent to 141,039 net tons,” the trade group said.
   U.S. steel exports are nearly 90 percent dependent on conditions in Canada and Mexico, and both markets have experienced an economic cooling off, said AIIS.
   “Add to that a U.S. dollar that has grown much stronger against the Mexican peso and the Canadian dollar this year, and the market for steel exports in North America is challenging at best. Canada’s finance minister and many others are predicting improvement north of the border in the second quarter, but the country’s central bank still expects growth of just 1.9 percent this year. 
   “The outlook for Mexico is a little better, with growth of 2.2 to 3.2 percent forecast. If the U.S. dollar stays strong – and there do not appear to be many signs that it will not – this may not be enough to have a significant impact on the demand for American steel,” AIIS explained.