• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Port of New Orleans Projects Steel Imports Will Remain Sturdy in First Quarter

Posted on: Monday, 13 February 2006, 03:03 CST

By Guillet, Jaime

The Port of New Orleans projects steel imports will remain sturdy in the first quarter.But the slow construction recovery after Hurricane Katrina means demand is not increasing much yet.Gary LaGrange, president and CEO of the Port of New Orleans, said the first and second quarters will be the hottest quarters since 1998 - a banner year when steel accounted for 70 percent of the Port of New Orleans' general cargo. Representatives from the American Institute for International Steel in Washington, D.C., report low consumer inventories and an increase in U.S. steel demand are contributing factors to increased import levels. Another factor is lower prices for imports after the Section 201 Tariff was removed in December 2003. The United States imposed the steel tariff in March 2002 after cheap imported steel flooded the American market. The tariff was rescinded after the World Trade Organization declared it illegal. The U.S. government's decision to place tariffs on imported steel made 2003 a challenging year for the Port, said Port of New Orleans spokesman Matthew Gresham. General cargo was down 17 percent in '03 driven by a 46-percent drop in imported steel - one of the Port's leading commodities.In the first nine months of 2004, general cargo rose 22.4 percent and steel imports were up 83 percent. Steel accounted for 54 percent of Port imports in 2004. Japan and Brazil are the top two steel exporters for the Port.AIIS President Dave Phelps said steel demand in 2004 was very, very good, which resulted in a steel inventory surplus in the first half of 2005. Demand rose slightly in the second half of the year and Phelps says underlying U.S. consumption remains strong, which propped U.S. steel prices. The American Metal Market, a New York-based trade publication, reported flat-rolled steel prices on Jan. 20 ranging from $540 to $550 per ton. Phelps said this is a healthy steel price compared with late 2003 when flat-rolled steel prices were in the neighborhood of $303 per ton.LaGrange said roughly 80 percent of the Midwest's steel products come through the Port of New Orleans. LaGrange said the New Orleans reconstruction should increase steel demand and imports. Phelps said he thinks Gulf Coast reconstruction will have an effect if it occurs in the early part of the year.If reconstruction for things that require steel begins in the first half of 2006 - and it's my understanding that it is just beginning - the actual consumption would be a boost for the steel market, said Phelps. Import projections for the second and third quarters look good, although in our industry it's not too smart to predict too far in advance.

(Copyright 2006 Dolan Media Newswires)

Source: New Orleans CityBusiness

More News in this Category