Dollar growth negatively affects US steel exports

A stronger US dollar is slowing the country's steel exports, which fell 13.8 percent YoY in March this year to 896,027 tons. Also, steel exports decreased by 7.1 percent in the first quarter of 2015 compared to the same period last year and amounted to 2.7 million tonnes per quarter.

On an annual basis, during March, exports declined 24.8 percent to Canada (to 423,426 tons) and 4.9 percent to Mexico (to 361,265 tons). At the same time, steel shipments in March rose by 4.2 percent to Canada and 2.9 percent to Mexico compared to the previous month. Exports in the first quarter of 2015 to Canada amounted to 1.31 million tons, down 16.6 percent. Exports to Mexico reached 1.05 million tons, up 7 percent on an annualized basis.

During the same time, exports to the countries of the European Union jumped by 38.21 percent to 111,202 tons. The products that showed significant changes in maritime traffic during the month of March compared to the previous month were: cold-rolled sheets (up 10.0 percent), galvanized sheets and strips (up 8.0 percent), and hot-rolled sheets (up up to 5 percent).

The American International Steel Institute said the YoY decline in steel product exports was not surprising given that the US dollar is significantly stronger than it was a year ago. The high dollar, coupled with stagnant or weak economic activity in much of the world, appears to leave little room for optimism for steel exports throughout the rest of 2015.