DoC: US steel imports from China plunge 23% YoY in October

The sharp drop in imports follows the imposition of the 25% tariff on Chinese steel products by the U.S. Trade Representative which took effect on September 27. The tariff has dampened sentiment among Chinese steel traders, who have reduced shipments to the U.S. in response to the additional costs.

Despite the on-year plunge, October's import figures showed a 5.9% increase compared to September, the DoC data show. This growth is part of a broader trend, as total U.S. steel imports for domestic consumption rose by 12.1% month-on-month to 2.18 million tonnes.

The increased demand for foreign steel was largely met by the European Union (EU), which shipped 410,300 tonnes of steel products to the U.S. in October, a dramatic 84% jump from September. However, the average price of EU steel imports decreased significantly to $1,687/tonne in October, down from $2,088/tonne in September, based on Mysteel's calculations.

A similar trend was observed for Chinese steel imports, with the average unit price falling to $1,767.7/tonne in October, down from $2,001.8/tonne in September, according to the DoC statistics.

Despite the lower prices, Chinese steel products have not been able to attract as many American buyers as steel from the EU. "With the additional tariff on Chinese steel, these products are less appealing, even though their CIF prices are competitive in the global market," a market observer in Shanghai told Mysteel Global.

In the short term, the surtax on Chinese steel is expected to divert more U.S. orders to mills in other regions, further reducing imports from China, Mysteel Global noted.

Looking ahead, concerns are rising that with Donald Trump set to begin his second presidential term, the U.S. may impose additional tariffs on steel items from other countries and regions, potentially reshaping global trade patterns, the observer added.

For the first ten months of 2024, the U.S. imported a total of 381,521 tonnes of steel products from China, down 22% compared to the same period last year, according to the DoC.

Written by Adele Pan, panqinjie@mysteel.com      

Edited by Russ McCulloch, russ.mcculloch@mysteel.com