NEWS RELEASES - 2000
FOR IMMEDIATE
RELEASE:
March 14, 2000
Contact: |
Meg Mullery |
202.342.8439 |
SLIGHT
DECLINE IN 1999 ANNUAL SPECIALTY STEEL IMPORTS
BUT RECORD IMPORTS IN FOURTH QUARTER
(Washington, D.C.) - Year-end data released today by the Specialty Steel Industry of North America (SSINA) indicate that 1999 provided little relief from the large volume of specialty steel imports that captured 26% of the U.S. market, a 1% decrease from 1998. Imports of all specialty steel in 1999 vs. 1998 declined 2%, while U.S. consumption rose 1%. Additionally, strong concern exists within the industry about the record amount of imports beginning in October 1999 and continuing through November and December.
According to H.L Kephart, SSINA Chairman and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, PA, "This pattern of record imports in the last three months of 1999 is true for most product lines. The industry is closely monitoring this fourth quarter import trend to see if it continues into this year."
The data reflect that 1999 imports of specialty steel, which includes stainless steel and electrical and tool steels, declined to 834,412 tons from the record high of 852,825 tons in 1998. However, imports of specialty steel during the fourth quarter increased dramatically, exceeding the 80,000 ton level each of the three months. (See attached bar chart reflecting U.S. imports of specialty steel between October 1998 and December 1999).
Imports of stainless steel, the industry's largest product line, also dropped 2% to 645,282 tons in 1999 from 660,178 tons in 1998, but reached a record amount of 192,330 total tons for the fourth quarter, the highest quarterly level of the year. This pattern applies to most individual products as well. Stainless steel sheet/strip imports decreased 2% in 1999 to 407,032 tons from 416,739 tons, but also reached a 1999 record quarterly amount of 119,840 tons in the fourth quarter. Stainless steel plate imports actually increased 7% to 60,304 tons in 1999 from 56,572 tons the previous year, while likewise attaining a record level of 17,594 tons for the fourth quarter. Both stainless steel plate and sheet/strip were the subject of unfair trade cases that successfully culminated in 1999 with the issuance of antidumping and countervailing duty orders. Said Kephart, "The industry is closely monitoring imports of both products to ensure that intentional circumventing of the orders is not occurring."
Stainless steel bar and wire imports decreased in 1999 compared to 1998, while rod imports increased. Specifically, bar imports decreased 7% to 87,537 tons from 94,306; but, as with the stainless steel flat-rolled products, increased during the fourth quarter to a 1999 quarterly record of 28,305 tons for the three-month period. Stainless steel wire imports decreased 19% to 24,738 tons from 30,572 tons, but increased significantly in the fourth quarter, although not to a record level. Stainless steel rod imports were up 6% for the year to 65,672 from 61,989 tons in 1998, and increased for the fourth quarter to a record 19,606 tons. The industry is analyzing imports of stainless long products for possible circumvention of existing trade orders and potential new violations of U.S. trade laws.
For individual product lines, domestic consumption in 1999 and percent increase/decrease over 1998 was as follows: stainless steel sheet/strip - 1,901,264 tons, a 4% increase; stainless steel plate - 249,955 tons, a 6% decrease; stainless steel bar - 219,156 tons, an 8% decrease; stainless steel rod - 94,783 tons, a 5% increase; stainless steel wire - 72,398 tons, a 21% decrease; tool steel - 113,431 tons, a 5% increase; electrical steel - 512,062 tons, a 1% decrease. (See attached table for more information on U.S. imports, consumption and market penetration data.)
SSINA is a Washington, DC-based trade association representing virtually all continental 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, D.C. law firm of Collier, Shannon, Rill & Scott, PLLC, serves as lead counsel to the SSINA.
U.S. Imports,
Consumption and Market Penetration Data*
For Specialty Steel Product Lines
1999/1998/1997
(Short Tons)
|
|
|
Twelve Month Import |
|||
|
Imports |
U.S. Consumption |
Penetration |
|||
Specialty Steel |
YTD |
Percent |
YTD |
Percent |
YTD |
YTD |
Product Lines |
December |
Increase/ |
December |
Increase/ |
December |
December |
|
1999 |
Decrease |
1999 |
Decrease |
1999 |
1998 |
Stainless Sheet/Strip |
407,032 |
-2% |
1,901,264 |
4% |
21% |
23% |
Stainless Plate |
60,304 |
7% |
249,955 |
-6% |
24% |
21% |
Stainless Bar |
87,537 |
-7% |
219,156 |
-8% |
40% |
40% |
Stainless Rod |
65,672 |
6% |
94,783 |
5% |
69% |
69% |
Stainless Wire** |
24,738 |
-19% |
72,398 |
-21% |
34% |
33% |
Total
Stainless Steel*** |
645,282 |
-2% |
2,537,555 |
1% |
25% |
26% |
Tool Steel |
74,117 |
9% |
113,431 |
5% |
65% |
63% |
Electrical Steel |
115,012 |
-8% |
512,062 |
-1% |
22% |
24% |
Total Specialty Steel |
834,412 |
-2% |
3,163,048 |
1% |
26% |
27% |
1998 and 1997 stastical data in tons follow:
|
|
|
Twelve Months |
|||
|
Imports |
U.S. Consumption |
Import Penetration |
|||
|
|
Percent |
|
Percent |
|
|
Specialty Steel |
1998 |
Increase/ |
1998 |
Increase/ |
1998 |
1997 |
Product Lines |
|
Decrease |
|
Decrease |
|
|
Stainless Sheet/Strip |
416,739 |
15% |
1,822,225 |
5% |
23% |
21% |
Stainless Plate |
56,572 |
-7% |
264,851 |
-6% |
21% |
21% |
Stainless Bar |
94,306 |
4% |
237,469 |
-6% |
40% |
36% |
Stainless Rod |
61,989 |
-23% |
90,402 |
-20% |
69% |
72% |
Stainless Wire** |
30,572 |
2% |
47,453 |
0% |
64% |
63% |
Total
Stainless Steel*** |
660,178 |
6% |
2,462,400 |
1% |
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 |
852,825 |
7% |
3,087,584 |
1% |
26% |
28% |
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. |
Prepaired by Georgetown Economic Services for the Specialty Steel Industry of North America |
|
