According to preliminary government data, US steel imports declined by 5.9% MoM in December 2011 as compared to November 2011.

Mr David Phelps president of American Institute for International Steel said that "The decline in December 2011 along the lines we expected, given reports from the AIIS monthly importer survey that showed slowing order taking during the late third and early fourth quarter when the domestic steel market prices were continuing to soften and consumers, concerned about the threat of a double dip recession, were reluctant to order more steel than required for their immediate needs. After that lull in import ordering, pent up demand and low inventories have appeared to have created a new confidence in consumers which is being reflected in a new round of import ordering, hopefully bolstering arrivals in the first quarter. We also believe that many consumers delayed deliveries of steel in December 2011 due to end of year inventory taxes in many states, suggesting that some of the decline was seasonal in nature."

He concluded that "The increase in imports in 2011 compared to 2010 is positive, reflecting the continued slow improvement in market conditions in many steel consuming sectors. Moreover, the increase in imports of semi finished steel, used by the domestic industry to augment their hot end capacity, up by 31.7% for the year, shows the overall strengthening of the steel market. Early indications are positive for 2012, as major steel markets continue to improve with non residential construction remaining at weak levels. With steel consumers and distributors starting the year with low inventories in the environment of improving demand and rising prices, there is some optimism in the marketplace for both the domestic industry and importers at this time. We look forward to improvements in import arrivals in the months to come."

US Steel Imports

In '000 tons

Cumulative Imports

In '000 tons

Semi finished Imports

In '000 tons

Source: steelguru.com