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By New_Deal_democrat May 15, 2015 8:08 am
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What's killing steel?

Ever since January, US steel production has turned seriously south, down over -10% YoY in most weekly reports. 

What's killing steel?  One graph from the Iron and Steel Institute
is worth 1000 words:

This week the analysis was updated through April:

"[S]teel import permit applications for the month of April total 3,294,000 net tons (NT). This was a 12% decrease from the 3,761,000 permit tons recorded in March and a 9% decrease from the March final imports total of 3,616,000 NT. Import permit tonnage for finished steel in April was 2,761,000, down 13% from the final imports total of 3,186,000 in March. For the first four months of 2015 (including April SIMA and March final), total and finished steel imports were 15,015,000 NT and 12,428,000 NT, respectively, up 12% and 26% from the same period in 2014. The estimated finished steel import market share in April was 31% and is 33% year-to-date (YTD).


".... Through the first four months of 2015, the largest offshore suppliers were South Korea (2,338,000 NT, up 49% from the same period in 2014), Turkey (1,178,000 NT, up 93%) and China (983,000, up 1%)."


From XE's currency converter page, here is a one year graph of the South Korean Won vs. the USD:

The US is in a shallow manufacturing recession because the overly strong $US is killing exports, and causing imports to surge.

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