NEWS RELEASES - 2001
FOR IMMEDIATE RELEASE:
Contact: |
Meg Mullery |
202.342.8439 |
Specialty Steel Industry Continues to Be Plagued by Import Epidemic
(Washington, DC) -- Data released today by the Specialty Steel Industry of North America (SSINA) indicate that while total specialty steel imports for the first quarter of 2001 decreased compared to the same period last year, import penetration did not budge. Imports captured more than a quarter - 27% - of the U. S. market for specialty steel in the first three months of this year, reflecting no change from the previous year. Import penetration for individual product lines ranged between a high of 86% for tool steel and a low of 19% for both stainless steel sheet/strip and stainless steel plate.
"Over the past decade, an unprecedented surge in unfairly priced and subsidized imports has severely damaged our industry," said SSINA Chairman H. L. Kephart, President and Chief Executive Officer of G. O. Carlson, Inc., a specialty steel producer in Thorndale, Pennsylvania.
"Last year, the U.S. market absorbed 894,000 tons of imported specialty steel, the highest level in industry history. Even if imports slack off, and there has been no evidence of this happening so far this year, the bar has been set so high that it will take years for our industry to fully recover from the market distorting practices of many of our trading partners. We appreciate the Bush Administration's decision to formally investigate whether import restrictions are needed to help U.S. steel producers in this important industry." Kephart noted that this year total specialty steel imports in January were 64,695 tons, dipped to 62,019 tons in February, and in March crept back up to 63,045 tons.
Almost half - 47% - of the U.S. market for stainless steel wire was captured by imports in the first quarter of this year, with imports increasing 8%, to 8,086 tons, compared to the same period last year.
Imports of tool steel increased to 20,979 tons, a 5% increase, with import penetration increasing 21 percentage points to 86%. Electrical steel imports increased 17%, to 31,881 from 27,218 tons, capturing 24% of U.S.. market share.
Comparing first quarter 2001 vs. 2000, total specialty steel imports decreased 23%, paralleling a 23% decrease in U.S. consumption blamed largely on the current economic slowdown in the U.S. Although imports of stainless steel, the industry's largest product line, decreased 31% in tonnnage, they nevertheless took a 25% bite out of U.S. market share.
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 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 January 2000 and March 2001.
U.S.
Imports, Consumption and Market Penetration Data
through 2000 and March 2001
For Specialty Steel Product Lines
| MONTHLY AVERAGE | ||||||
|
|
|
%
Change |
|
%
Change |
Current |
IMPORTS |
||||||
Stainless Sheet/Strip |
23,860 |
21,461 |
11.2% |
37,824 |
-36.9% |
23,734 |
Stainless Plate |
3,607 |
3,034 |
18.9% |
7,824 |
-53.9% |
3,975 |
Stainless Bar |
9,770 |
8,732 |
11.9% |
10,942 |
-10.7% |
9,810 |
Stainless Rod |
5,703 |
5,515 |
3.4% |
7,023 |
-18.8% |
5,352 |
Stainless Wire** |
2,695 |
2,437 |
10.6% |
2,490 |
8.2% |
2,644 |
Total Stainless*** |
45,636 |
41,180 |
10.8% |
66,104 |
-31.0% |
45,516 |
Tool Steel |
6,993 |
7,301 |
-4.2% |
6,629 |
5.5% |
7,065 |
Electrical Steel |
10,627 |
10,686 |
-0.6% |
9,073 |
17.1% |
10,473 |
Total Specialty Steel*** |
63,256 |
59,167 |
6.9% |
81,805 |
-22.7% |
63,054 |
CONSUMPTION |
||||||
Stainless Sheet/Strip |
127,365 |
127,889 |
-0.4% |
175,219 |
-27.3% |
129,445 |
Stainless Plate |
18,716 |
16,658 |
12.4% |
25,744 |
-27.3% |
21,000 |
Stainless Bar |
21,411 |
19,641 |
9.0% |
23,732 |
-9.8% |
21,128 |
Stainless Rod |
7,270 |
7,452 |
-2.4% |
9,678 |
-24.9% |
7,453 |
Stainless Wire** |
5,732 |
5,980 |
-4.2% |
6,145 |
-6.7% |
5,487 |
Total Stainless*** |
180,494 |
177,620 |
1.6% |
240,518 |
-25.0% |
184,513 |
Tool Steel |
8,122 |
9,719 |
-16.4% |
10,147 |
-20.0% |
6,081 |
Electrical Steel |
44,524 |
43,971 |
1.3% |
49,754 |
-10.5% |
45,719 |
Total Specialty Steel*** |
233,140 |
231,311 |
0.8% |
300,419 |
-22.4% |
236,313 |
IMPORT PENETRATION |
||||||
Stainless Sheet/Strip |
18.7% |
16.8% |
2.0% |
21.6% |
-2.9% |
18.3% |
Stainless Plate |
19.3% |
18.2% |
1.1% |
30.4% |
-11.1% |
18.9% |
Stainless Bar |
45.6% |
44.5% |
1.2% |
46.1% |
-0.5% |
46.4% |
Stainless Rod |
78.4% |
74.0% |
4.4% |
72.6% |
5.9% |
71.8% |
Stainless Wire** |
47.0% |
40.8% |
6.3% |
40.5% |
6.5% |
48.2% |
Total Stainless*** |
25.3% |
23.2% |
2.1% |
27.5% |
-2.2% |
24.7% |
Tool Steel |
86.1% |
75.1% |
11.0% |
65.3% |
20.8% |
116.2% |
Electrical Steel |
23.9% |
24.3% |
-0.4% |
18.2% |
5.6% |
22.9% |
Total Specialty Steel*** |
27.1% |
25.6% |
1.6% |
27.2% |
-0.1% |
26.7% |
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 2001 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 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
U.S.
Imports, Consumption and Market Penetration Data*
For Specialty Steel Product Lines
2001/2000/1999
|
|
|
Three
Month |
|||||
|
Month |
YTD |
Increase/ |
Month |
YTD |
Increase/ |
YTD |
YTD |
Stainless Sheet/Strip |
23,734 |
71,580 |
-37% |
129,445 |
382,100 |
-27% |
19% |
22% |
Stainless Plate |
3,975 |
10,821 |
-54% |
21,000 |
56,149 |
-27% |
19% |
30% |
Stainless Bar |
9,810 |
29,311 |
-11% |
21,128 |
64,234 |
-10% |
46% |
46% |
Stainless Rod |
5,352 |
17,109 |
-19% |
7,453 |
21,809 |
-25% |
78% |
73% |
Stainless Wire** |
2,644 |
8,086 |
8% |
5,487 |
17,195 |
-25% |
47% |
32% |
Total
Stainless Steel*** |
45,516 |
136,908 |
-31% |
184,513 |
541,487 |
-25% |
25% |
27% |
Tool Steel |
7,065 |
20,979 |
5% |
6,081 |
24,365 |
-20% |
86% |
65% |
Electrical Steel |
10,473 |
31,881 |
17% |
45,719 |
133,573 |
-11% |
24% |
18% |
Total Specialty |
63,054 |
189,768 |
-23% |
236,313 |
699,425 |
-23% |
27% |
27% |
2000 and 1999 statistical data in tons follow:
|
|
|
Twelve
Month |
|||
|
|
Percent |
|
Percent |
|
|
Stainless Sheet/Strip |
388,263 |
-5% |
1,875,208 |
-1% |
21% |
21% |
Stainless Plate |
65,622 |
9% |
252,076 |
1% |
26% |
24% |
Stainless Bar |
125,725 |
44% |
267,115 |
22% |
47% |
40% |
Stainless Rod |
82,056 |
25% |
108,910 |
15% |
75% |
69% |
Stainless Wire** |
31,059 |
26% |
83,032 |
-2% |
37% |
29% |
Total
Stainless Steel*** |
692,726 |
7% |
2,586,341 |
2% |
27% |
25% |
Tool Steel |
78,629 |
6% |
114,226 |
1% |
69% |
65% |
Electrical Steel |
122,654 |
7% |
564,474 |
10% |
22% |
22% |
Total Specialty |
894,009 |
7% |
3,265,041 |
3% |
27% |
26% |
