By Paul Ploumis (ScrapMonster Author)

July 08, 2016 03:11:56 PM

Richard Chriss, Esq. 

Phone: 703.245.8040 

Chriss@aiis.org

Falls Church, VA. July 8, 2016.

Steel exports inched up in May, reaching 803,464 net tons.

The May total was 1.1 percent higher than in April, but 7.7 percent lower than in May 2015.

Exports to Canada increased 1 percent from April and 1.4 percent from the previous May to 414,398 net tons, while exports to Mexico totaled 304,578 net tons, decreases of 0.2 percent and 2.9 percent respectively. The European Union increased its purchases of steel from the United States by 35.1 percent to 25,227 net tons, which marked a 6.6 percent drop from a year earlier.

Through the first five months of the year, exports dropped 10.9 percent to 3.93 million net tons. Year-to-date exports to Mexico dove 12 percent to 1.49 million net tons, exports to Canada were down 5.5 percent to 2.01 million net tons, and exports to the European Union fell 40 percent to 100,782 net tons.

Little differed from April to May, but the international order obviously underwent some significant changes – even if only psychological ones for now – in June. The British vote to exit the European Union on June 23 will not be implemented for some time, but the stunning and relatively significant margin of victory for the “Leave” side shook the globe and was felt far beyond Europe. The result of the June 23 vote raises the possibility that other member states could also vote to leave, and that the European Union could either be transformed into some other type of political and/or economic union, or possibly even cease to exist altogether. The success of the Leave vote also resurrected the possibility that Scotland, which registered a large majority in favor of remaining in the EU, could again seek to become an independent country. All of this, as well as the political disarray in Great Britain following the vote, creates more uncertainty that could have negative effects on an already shaky global economy, which would inevitably be felt by steel producers.