NEWS RELEASES - 2000
FOR IMMEDIATE
RELEASE:
May 10, 2000
Contact: |
Meg Mullery |
202.342.8439 |
SPECIALTY STEEL CONSUMPTION AND IMPORTS INCREASE
(Washington, DC) -- Economic growth and increased demand favorably impacted U.S. consumption of specialty steel in the first two months of 2000, according to the latest data released today by the Specialty Steel Industry of North America (SSINA). Total specialty steel consumption increased an average 23% in January/February 2000 vs. January/February 1999, although was essentially flat compared to the fourth quarter 1999. The data also indicate, however, that import levels and penetration for all product lines remain high.
The monthly import average for all specialty steel products for January/February 2000 vs. the same 1999 period increased 36% to 77,290 from 56,852 tons. For the same period, total stainless steel imports, the industry's largest product line, increased 44% to 62,019 from 43,029 tons. By product line, average imports of stainless steel plate saw the most staggering increase, more than doubling in the first two months of this year, to 7,077 tons from 3,416 tons in January/February 1999 -- a 107% increase.
SSINA Chairman of the Board H. L. Kephart, who is also President and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, PA, said, "Import levels continue to be of great concern to the industry. Last year, specialty steel imports jumped from a low of 55,503 tons in January to a high of 82,304 in November. We are watching import data in 2000 carefully to assess whether we are witnessing a similar trend. We also are carefully examining certain imported products we believe are being dumped and are receiving foreign government subsidies, such as stainless bar and stainless cut plate. Imports of cut plate appear to be increasing in circumvention of our successful trade cases on coiled plate."
Imports of specialty steel captured an average 27% of the U.S market in January/February 2000, a 3% increase over the same 1999 period. With the exception of electrical steel, import penetration for each product line increased. Stainless steel rod's import penetration was the highest at 74%, followed by: tool steel, 65%; stainless steel bar, 46%; stainless steel wire, 37%; stainless steel plate, 31%; stainless steel sheet/strip, 21%.
SSINA is a Washington, D.C.-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 shipped 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 Scott, PLLC, serves as lead counsel to the SSINA.
Note to Editors: See attached table for more information on U.S. imports, consumption, and market penetration data, and bar chart reflecting U.S. imports of specialty steel between December 1998 and February 2000.
U.S. Imports,
Consumption and Market Penetration Data
through 1999 and January 2000 For Specialty Steel Product Lines
2000/1999
(Short Tons)
|
|
MONTHLY AVERAGE |
|||||
|
|
% Change |
|
% Change |
|
Current |
|
|
1st Qtr. '00 |
4th Qtr. '99 |
1st Qtr. '00 vs. |
1st Qtr. '99 |
1st Qtr. '00 vs. |
Month's |
|
|
(Jan. & Feb. '00) |
|
4th Qtr. '99 |
(Jan. & Feb. '00) |
1st Qtr. '99 |
Date |
|
IMPORTS |
|||||||
Stainless Sheet/Strip |
35,308 |
39,947 |
-11.6% |
28,225 |
25.1% |
34,942 |
|
Stainless Plate |
7,077 |
5,865 |
20.7% |
3,416 |
107.2% |
7,061 |
|
Stainless Bar |
10,249 |
9,435 |
8.6% |
5,231 |
95.9% |
10,468 |
|
Stainless Rod |
6,960 |
6,535 |
6.5% |
4,552 |
52.9% |
5,897 |
|
Stainless Wire** |
2,424 |
2,329 |
4.1% |
1,606 |
51.0% |
2,553 |
|
Total Stainless*** |
62,019 |
64,110 |
-3.3% |
43,029 |
44.1% |
60,921 |
|
Tool Steel |
6,102 |
6,003 |
1.7% |
4,873 |
25.2% |
6,213 |
|
Electrical Steel |
9,169 |
11,504 |
-20.3% |
8,951 |
-2.4% |
9,477 |
|
Total Specialty Steel*** |
77,290 |
81,617 |
-5.3% |
56,852 |
35.9% |
76,611 |
|
CONSUMPTION |
|||||||
Stainless Sheet/Strip |
164,870 |
169,457 |
-2.7% |
138,971 |
18.6% |
163,886 |
|
Stainless Plate |
23,102 |
22,410 |
3.1% |
16,547 |
39.6% |
23,405 |
|
Stainless Bar |
22,424 |
21,084 |
6.4% |
15,234 |
47.2% |
22,337 |
|
Stainless Rod |
9,471 |
8,974 |
5.5% |
6,570 |
44.2% |
8,633 |
|
Stainless Wire** |
6,562 |
5,798 |
13.2% |
6,107 |
7.4% |
6,559 |
|
Total Stainless*** |
226,429 |
227,724 |
-0.6% |
183,428 |
23.4% |
224,820 |
|
Tool Steel |
9,374 |
9,258 |
1.3% |
8,118 |
15.5% |
9,396 |
|
Electrical Steel |
48,609 |
46,046 |
5.6% |
40,049 |
21.4% |
47,596 |
|
Total Specialty Steel*** |
284,412 |
283,028 |
0.5% |
231,595 |
22.8% |
281,813 |
|
IMPORT PENETRATION |
|||||||
Stainless Sheet/Strip |
21.4% |
23.6% |
-2.2% |
20.3% |
1.1% |
21.3% |
|
Stainless Plate |
30.6% |
26.2% |
4.5% |
20.6% |
10.0% |
30.2% |
|
Stainless Bar |
45.7% |
44.7% |
1.0% |
34.3% |
11.4% |
46.9% |
|
Stainless Rod |
73.5% |
72.8% |
0.7% |
69.3% |
4.2% |
68.3% |
|
Stainless Wire** |
36.9% |
40.2% |
-3.2% |
26.3% |
10.7% |
38.9% |
|
Total Stainless*** |
27.4% |
28.2% |
-0.8% |
23.5% |
3.9% |
27.1% |
|
Tool Steel |
65.1% |
64.8% |
0.3% |
60.0% |
5.1% |
66.1% |
|
Electrical Steel |
18.9% |
25.0% |
-6.1% |
22.4% |
-3.5% |
19.9% |
|
Total Specialty Steel*** |
27.2% |
28.8% |
-1.7% |
24.5% |
2.6% |
27.2% |
|
NOTE: |
Changes in import penetration are percentage point changes. |
* |
Imports adjusted to exclude hot bands imported for re-rolling and reported under shippments. |
** |
Shipments estimated and subject to revision when actual data is received. |
*** |
Shipment and consumption data for these categories may be overstated due to inclusion of shipments from wire redrawers which are aready included in shipments/imports of rod; consequently import penetration may be slightly understated. |
Prepared
by
Georgetown Economic Services for the Specialty Steel Industry of North America
