US lowers 2020 import quota for Brazilian semi-finished steel

• Friday, September 4, 2020
• Source:ferro-alloys.com

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[Ferro-Alloys.com] The United States lowered its import quota for shipments of semi-finished steel from Brazil for the remainder of 2020, amid challenging conditions in the domestic market, according to a presidential proclamation issued late Aug. 28.

 

Due to the depressed conditions, the remaining quota for Brazilian semi-finished steel products has been lowered to 60,000 mt, down from 350,000 mt, according to the US-based Steel Manufacturers Association (SMA).

 

Brazil is the second-largest source of steel imports to the US and the largest source of imports of semi-finished steel products, according to the proclamation.

 

"The United States steel market has contracted in 2020," the proclamation states. "After increasing in 2018 and 2019, steel shipments by domestic producers through June of this year are approximately 15% lower than shipments for the same time period in 2019, with shipments in April and May of this year more than 30% lower than the shipments in the same months in 2019."

 

The proclamation also notes that US steelmakers' adjusted year-to-date capacity utilization rate through Aug. 15 is below 70% and the current rate has been near or low 60% since the second week of April.

 

Kevin Dempsey, interim CEO of the American Iron and Steel Association noted that while there has been some modest recovery in the US steel market, the industry continues to face significant challenges due to the sharp drop in demand as a result of the coronavirus pandemic.

 

"So far in 2020, raw steel production is down 20% compared to the same period last year and steelmaking capacity utilization has only averaged approximately 66% this year so far, compared to nearly 81% during the same period last year," Dempsey said in a statement.

 

"These difficult conditions make the industry even more vulnerable to surges in imports."

 

Source: S&P Global Platts

 

 

 

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