May steel exports were at their highest level since 1982, while imports plunged 25 percent from year-ago levels in light of the weak dollar and slowing local demand.

Exports rose as oversea prices topped those in the domestic market and the weak dollar discouraged U.S. steel consumers from buying from foreign sources and made U.S. steel cheaper for foreign consumers. U.S. exports of steel mill products have been rising steadily during the past few years, climbing almost 15 percent in 2007 over the previous year.

As domestic steel prices climbed to record levels, steel imports dropped nearly 18 percent in May based on preliminary reporting, according to the American Institute for International Steel.

"Final imports in April were almost 3 million tons, providing some relief to steel-starved American steel consumers, who have been living with rapidly escalating prices and low inventories in 2008," said AIIS President Dave Phelps

As a steel-related trade association, the AIIS says it supports real free trade in steel and is committed to promoting the interests of steel importers, exporters, distributors, producers, consumers, and related businesses.

"We hope that import levels will improve in future months and benefit all steel consumers," Phelps said.

Total steel imports for May were 2.45 million tons, compared to 2.98 million tons the previous month. The figures represent a 17.8 percent month-to-month decrease, and a 25 percent drop compared to May 2007 imports.

Imports of semi-finished steel accounted for some 60 percent of the overall decline as domestic demand for semi-finished steel dropped in the month because of a negative arbitrage, said steel analyst Michelle Applebaum in her most-recent weekly Steel Market Intelligence report.

"Semi prices jumped to levels where rolling semi-finished into finished steel products became a negative return in the second quarter," she said.