Latin American steel exports to the United States fell due to quotas and weak demand

Steel exports from Latin America to the United States fell in August under pressure from quotas and increased production in the United States. Shipments from the region totaled 276,647 tons, down 70% from 925,113 tons in the same month last year, according to the US Census Bureau.

In value terms, exports to the United States were $ 236 million, up from $ 701 million in August 2018. Steel shipments also fell from $ 1.23 million to $ 840 million in July. The country shipped 15,311 tons of steel, worth $ 21.1 million, up from 607,508 tons and $ 385 million in August last year, and 910,976 tons and $ 561 million in July. The drop reflects the impact of quotas on Brazilian steel, instead of the 25% tariff applied to most US steel imports.

The Brazilian plate quotas for the year were filled by the end of July, said Maximo Vedoya, CEO of Luxembourg-based steel company Ternium, at the time.

Mexico is one of the few countries capable of supplying steel to the US without tariffs or quotas after it was removed from a 25% tax in May to pave the way for the ratification of the US-Mexico-Canada trade deal.