NEWS RELEASES - 2001

(Washington, DC) -- Specialty steel imports and import penetration in 2000 continued to bedevil a competitive U.S. industry that has been dealing with unfairly traded imports for more than a decade, according to data released today by the Specialty Steel Industry of North America (SSINA).

"The past eight years saw an economy that grew for the longest period in U.S. history. The unemployment rate is the lowest in 30 years; the rate of inflation is the lowest since the 60's; 22 million new jobs have been created; and the soaring budget deficit has been eliminated. The government now projects a $5 trillion surplus over the next decade," said H.L. Kephart, SSINA Chairman and President and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, PA.

"Yet," Kephart continued, "Unfairly traded imports have hampered our industry's opportunities to fully reap the rewards of this prosperity. We appreciate the commitments made by the incoming Bush administration to vigorously enforce antidumping laws and come down harder on foreign producers selling at unfairly low prices in the United States and on countries that provide massive subsidies to their steel industries so they can sell at deflated prices to American companies. We also call upon the new administration to establish a special mechanism for dealing more swiftly and effectively with steel import surges and to strengthen the overall steel import monitoring process."

According to the data, specialty steel imports in January through October 2000, the latest numbers available, reached 776,725 tons, a 16% increase over the 671,147 tons recorded for the same 10-month period in 1999. Imports of stainless steel, the industry's largest product line, increased 18%, to 610,862 from 517,646 tons.

These imports captured an increasing share of the U.S. market. Specialty steel import penetration for the first ten months of 2000 was 28%, up 2 percentage points over the comparable 1999 period. Imports of stainless steel also captured more than a quarter of the U .S. market with import penetration at 27%, up 2 percentage points over 1999.

A recent case filed by five U.S. producers of stainless steel bar charged France, Germany, Italy, Korea, Taiwan and the United Kingdom with "blatant disregard of the U.S. trade laws and international trade rules." The current data show stainless steel bar imports increasing 58% in the first ten months of 2000 and capturing almost half of the U.S. market. Stainless steel bar imports were 108,083 tons with an import penetration rate of 47%, compared to 68,521 tons and an import penetration rate of 39% in 1999.

Along with stainless steel bar, imports and import penetration in all product categories reflected increases. While stainless steel bar experienced the highest rate of increases, imports and import penetration in most product categories increased substantially in the January/October 2000 period compared to the same 1999 period.

For flat-rolled products, imports of stainless steel plate increased 23% and sheet/strip increased 5%, while import penetration was 27% and 21%, respectively.

Imports of stainless steel long products, i.e., rod, wire, and the aforementioned bar, showed substantial increases as well. Stainless steel rod imports increased 34%, from 52,907 tons recorded in the first ten months of 1999 to 71,066 tons in the same 2000 period. Imports of stainless steel rod captured 76% of the U.S. market in 2000, up 7 percentage points over 1999. Similarly, stainless steel wire imports increased 33% to 26,440 tons in 2000 from 19,946 tons in 1999; import penetration increased 9 percentage points to 37%.

Imports of tool and electrical steel increased 3% and 12%, respectively. Imports of tool steel captured 67% of the U.S. market in the January/October 2000 period compared to the same 1999 period, while electrical steel import penetration was 21%.

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 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 tables for more information on U.S. imports, consumption and market penetration data; and bar chart reflecting the 15-month trend of specialty steel imports between August 1999 and October 2000.

Prepared by Georgetown Economic Services for the Specialty Steel Industry of North America

NOTE:Changes in import penetration are percentage point changes.

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

**Shipments for 2000 estimated and subject to revision when actual data is received.