Mexico And Canada Buy More American Steel
1 July 2016
U.S. steel exports rose 2.5 percent month-over-month in April, the most recent month for which data was available.
Canada and Mexico bought more steel from the United States in April, according to the American Institute for International Steel. The United States exported 305,054 tons to Mexico in April, a 5.4 percent increase from March. And exports to Canada grew 2.4 percent in April to 410,341 tons.
Sales to the European Union however dropped by 7.2 percent to 18,673 net tons in April, a 37.4 percent decline from the same time last year. Overall U.S. steel exports in April fell 6 percent year-over-year to 794,537 net tons, according to the American Institute for International Steel.
Historically, Mexico and Canada are by far the biggest foreign buyers of steel made in the United States, where the steel industry mainly serves the domestic market. Automakers, some of the U.S. steel industry’s biggest customers, however increasingly operate plants in Canada and Mexico.
Mexico’s economy has been getting stronger while Canada’s has been underperforming at a growth rate of 2.4 percent, when 2.9 percent was expected.
“In Mexico, meanwhile, growth has been fairly steady recently, despite challenges created by low oil prices,” the AIIS stated in a release. “The 2016 forecast appears to be brighter for Mexico, but the Canadian dollar has gained some value against the U.S. dollar since late 2015, while the Mexican peso has remained at historic lows, boosting American exports to our northern neighbor.”
Source : nwitimes.com