NEWS RELEASES - 2000

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FOR IMMEDIATE RELEASE:
January 14, 2000

Contact:

Meg Mullery

202.342.8439

October '99 Stainless Steel Imports Reflect a Record High

(Washington, DC) - The Specialty Steel Industry of North America (SSINA) reported today that imports of all specialty steel product lines increased sharply in October of last year, the most recent available monthly data. Total specialty steel imports in October were 81,587 tons, a 26% increase over the previous month's total of 64,815 tons. (See attached graph indicating specialty steel monthly imports for January through October 1999.)

"This upward spiral in imports concerns our industry. We are analyzing all the data very carefully to get the complete statistical picture and ensure that circumvention of trade case orders is not occurring," said H. L. Kephart, SSINA Chairman and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, PA. Kephart also noted that imports of specialty steel products from countries not currently subject to antidumping and countervailing duties are being analyzed to determine future actions to be taken by the industry.

October 1999 imports of stainless steel flat products (sheet/strip and plate) increased 10,000 tons to 46,371 from 36,107 tons in September; long products (bar, rod, and wire) increased to 18,322 from 15,496 tons in the previous month. Total stainless steel imports for October 1999 were 64,694, a record high for the year.

The monthly increases in imports in 1999 contrast with the decrease in imports when comparing year-to-date October 1999 with the same 1998 period, an indication of the positive effect of the trade cases filed by the industry over the past couple of years. Successful unfair trade cases decided in 1998 and 1999 levied antidumping and countervailing duties ranging up to 60% on stainless steel sheet and strip in coils; 45% on stainless steel plate in coils; and 34% on stainless steel rod. (See attached Status of Unfair Trade Cases.)

For the January through October 1999 period, total specialty steel imports decreased 8%, to 671,147 from 729,245 tons compared to the same ten-month period in 1998. Likewise, total stainless steel imports dropped 9% to 517, 646 from 565,736 tons. Import penetration for the ten-month 1999 period for all specialty steel was 26%. (For more information on imports, U.S. consumption, and import penetration, see attached table.)

SSINA is a Washington, D.C.-based trade association representing virtually all domestic specialty steel producers. Specialty steels are high technology, high-value stainless and other specialty alloy products. While shipments of specialty steel account for only 2% of all steel produced in North America, annual revenues of approximately $8 billion account for over 14% of the total value of all steel shipped.

David A. Hartquist, an international trade attorney with the Washington, DC law firm of Collier, Shannon, Rill & Scott, pllc, serves as lead counsel to SSINA.

U.S. Imports, Consumption and Market Penetration Data*
For Specialty Steel Product Lines
1999/1998/1997
(Short Tons)

 

 

 

Ten Month Import

 

Imports

U.S. Consumption

Penetration

Specialty Steel

YTD

Percent

YTD

Percent

YTD

YTD

Product Lines

October

Increase/

October

Increase/

October

October

 

1999

Decrease

1999

Decrease

1999

1998

Stainless Sheet/Strip

327,367

-8%

1,565,217

1%

21%

23%

Stainless Plate

48,905

-3%

204,439

-12%

24%

22%

Stainless Bar

68,521

-15%

177,644

-13%

39%

39%

Stainless Rod

52,907

1%

77,151

-0%

69%

68%

Stainless Wire**

19,946

-25%

60,879

-23%

33%

34%

Total Stainless Steel***
   (Sheet, Strip, Plate,
   Bar, Rod & Wire)

517,646

-9%

2,085,331

-3%

25%

26%

Tool Steel

62,325

6%

95,393

2%

65%

63%

Electrical Steel

91,176

-13%

420,026

-7%

22%

23%

Total Specialty Steel

671,147

-8%

2,600,750

-3%

26%

27%

1998 and 1997 stastical data in tons follow:

 

Imports

U.S. Consumption

Import Penetration

 

 

Percent

 

Percent

 

 

Specialty Steel

1998

Increase/

1998

Increase/

1998

1997

Product Lines

 

Decrease

 

Decrease

 

 

Stainless Sheet/Strip

416,740

15%

1,843,557

6%

23%

21%

Stainless Plate

56,572

-7%

266,470

-6%

21%

21%

Stainless Bar

94,306

3%

235,760

-7%

40%

36%

Stainless Rod

61,988

-23%

90,403

-20%

69%

72%

Stainless Wire**

30,572

2%

47,453

0%

64%

63%

Total Stainless Steel***
   (Sheet, Strip, Plate,
   Bar, Rod & Wire)

660,178

6%

2,483,641

2%

27%

26%

Tool Steel

67,893

11%

107,816

-2%

63%

56%

Electrical Steel

124,754

12%

517,368

0%

24%

22%

Total Specialty Steel

852,826

7%

3,108,825

2%

27%

26%


NOTE:

Changes in import penetration are percentage point changes.

*

Imports adjusted to exclude hot bands imported for re-rolling and reported under shipments.

**

Shipments estimated and subject to revision when actual data is received.

***

Shipment and consumption data for these categories may be overstated due to the inclusion of shipment from wire redrawers which are already included in shipments/imports of rod; consequently import penetration may be slightly understated.

 

YTD 1999 and 1998 data reflect change in methodology for wire import penetration calculation.

Stainless Steel Producers and Unions
Status of Unfair Trade Cases by Major Product Line Filed in 1997 and 1998

Product: Stainless Steel Rod
Date Filed: July 30, 1997
Named Countries:  Italy, Germany, Japan, Korea, Spain, Sweden, Taiwan
Status: The case concluded with the issuance of final antidumping and countervailing duty (CVD) orders by the Commerce Department on 9/15/98. The duties range up to 34%, with penalties extending back to 3/5/98. The International Trade Commission (ITC) voted on final injury determination on 9/1/98. Excluding Germany, ITC concluded that imports from six of the seven named countries caused injury to producers.
Next Step: On 10/15/98, appeals were filed with Court of International Trade. Successful appeals would result in a significant increase in the antidumping duties levied on imports from Korea and the assessment of antidumping duties on imports from Germany.
Product: Stainless Steel Round Wire
Date Filed: March 27, 1998
Named Countries:  Canada, India, Japan, Korea, Spain, Taiwan
Status: On 6/4/98, the ITC preliminarily determined that imports from the named countries are injuring the domestic industry. On 11/13/98, Commerce set preliminary antidumping duties ranging up to 36% on imports from the subject countries. On April 5, final antidumping duties ranging up to 36% were announced by Commerce.
Case Concludes: On 5/10/99, The ITC voted against injury. To date, no decision has been made on appealing the ITC determination.
Product: Stainless Steel Plate in Coils
Date Filed: March 31, 1998
Named Countries:  Belgium, Canada, Italy, South Korea, South Africa, Taiwan
Status: On 5/15/98, the ITC voted preliminarily that imports from the named countries are injuring the domestic industry. On 9/1/98, Commerce issued preliminary CVD determinations against Korea, Italy, Belgium, and South Africa ranging up to 15%. On 10/27/98, Commerce announced preliminary antidumping duties ranging up to 68% on imports from the six named countries. Subsequently, on 12/3/98, Commerce published a revised preliminary determination on imports from Taiwan and took the extremely unusual step of finding that Taiwanese producer Ta Chen Stainless Pipe and its U.S. subsidiary, Ta Chen International, engaged in "middleman dumping" of coiled stainless steel plate produced by Yieh United Steel Corp. On March 22, 1999, Commerce issued final antidumping duties ranging between 7% and 45% and countervailing duties ranging between 2% and 15%.
Case Concludes: On 4/22/99, the ITC voted unanimously in favor of injury. Antidumping and CVD orders have been issued.
Product: Stainless Steel Sheet and Strip in Coils
Date Filed: June 10, 1998
Named Countries:  France, Germany, Italy, Japan, Mexico, South Korea, Taiwan, United Kingdom
Status: On 7/24/98, the ITC voted preliminarily that imports from the named countries are injuring the domestic industry. On 10/30/98, U.S. producers requested that Commerce apply the "critical circumstances" provision of U.S. trade laws to combat recent import surges. An affirmative finding would impose antidumping duties retroactively to 9/18/98. On 11/10/98, Commerce announced preliminary CVD rates ranging up to 29% against France, Italy and South Korea. On 12/18/98, Commerce announced preliminary antidumping duty margins ranging up to 59%; and decided favorably on "critical circumstances" as to Germany, Japan (Nippon Metals, Nippon Yakin, and Nisshin only) and Korea (Taihan Electric Wire Co. only). "Critical circumstances" were not found for Italy and Taiwan.
Case Concludes: On 5/20/99, Commerce announced final antidumping and CVD duties ranging up to 60%. On 7/7/99, the ITC voted affirmatively in favor of injury. Antidumping and CVD orders have been issued.