DoC: U.S. steel imports from China drop 9.8% YoY in November

November's imports were also lower compared to October, based on the DoC data. Meanwhile, the average price of Chinese steel imports fell marginally to $1,702.8/tonne in November, down from $1,767.7/tonne in October, according to Mysteel's calculations.

This decline in volume is part of a broader trend, as total U.S. steel imports for domestic consumption from all sources dropped by 13.7% month-on-month to 1.88 million tonnes.

Significantly, U.S. steel imports from Japan fell sharply in November, dropping 44% from October to just 69,986 tonnes. Market insiders suggested that this decline was partially due to the U.S. government's opposition to the proposed buyout between Japan's largest steelmaker, Nippon Steel, and United States Steel Corporation, which has dampened sentiment among both Japanese steel traders and U.S. buyers.

November 2024 was a crucial month for U.S. politics, as former President Donald Trump had won the U.S. presidential election again on November 5. His "America First" policy has fostered negative sentiment toward foreign acquisitions, a market observer told Mysteel Global.

Nippon Steel had made several efforts to push through the deal over the past two months, but these efforts were ultimately in vain, as President Biden "fully and permanently abandoned" the acquisition plan on January 3, as reported.

The two companies on Monday filed a lawsuit against the Biden administration over the decision to block the merger, as reported.

"If the acquisition fails, Nippon Steel would face penalties and significant pressure from the potential high tariff policies of the incoming Trump administration," market sources said. The volume of steel exports from Japan to the U.S. could further decrease, they added.

On Tuesday, the heads of Japan's three most powerful business lobbies – the chairman of the Japan Business Federation (Keidanren), Masakazu Tokura, Japan Chamber of Commerce and Industry President Ken Kobayashi, and Japan Association of Corporate Executives Takeshi Niinami – stood side by side for a press conference and roundly condemned Biden's decision.

"This decision is very regrettable," Tokura said. "Japan invests more in the U.S. than anyone else in the world, and we are concerned that (Biden's block) is being done for security reasons and will affect the U.S.-Japan relationship," he warned.

Written by Adele Pan, panqinjie@mysteel.com      

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