Total SBQ licenses year to date, (YTD) through May 28^th totaled 182,709 tons, up 3.7% from the YTD 2017 total of 176,271 tons. Thus far in May, 35,803 tons of licenses have been requested, down 23% from the 46,546 in May 2017.

Figure 1 shows the monthly total SBQ licenses for from June 2017 through May 2018 as reported by the Steel Import Monitoring System (SIMA).

There are seven HTS codes for SBQ. Taking a look at the total licensed tons for 2018, for each of the HTS codes we see that; Bars (free cutting) licenses totaled 5,019 ton in May and 27,132 tons YTD. Other bars (forged) licenses totaled 3,338 ton in May and 6,224 tons YTD. Other bars (free cutting) licenses totaled 7,454 in May and 20,106 tons YTD. Other bars (cold formed/cold finished), licenses totaled 2,692 in May and 12,675 tons YTD. Bars (cold finished) licenses totaled 4,050 in May and 26,556 tons YTD. Other bars (alloy steel forged) licenses totaled 3,288 in May and 17,959 tons YTD. Other bars (alloy steel cold formed/cold finished), licenses totaled 9,960 in May and 51,964 tons YTD.

Figure 2 charts SBQ licenses YTD through May 28th 2018, along with YTD 2017 by country.

The top three countries who applied for import licenses were Germany, Canada, and France. Germany requested 37,969 licensed tons YTD, down 13% y/y. Canada requested 29,980 licensed tons YTD, down 20% y/y. France requested 26,200 licensed tons YTD, up 17% y/y

The average $AUV in January 2018 was $807, increasing to $1,327 last month. Thus far in May, the $AUV increased to $1,343 per ton.

At Gerdau we closely follow trade in long products steel since it has a profound impact on domestic market-share and material pricing. We want you, our valued customers to have access to current information that can help you better plan and operate your businesses.