NEWS RELEASES - 2002

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FOR IMMEDIATE RELEASE:

Date: January 9, 2002

Contact:

Meg Mullery

202.342.8439

IMPORTS CONTINUE TO FRUSTRATE
U.S. SPECIALTY STEEL INDUSTRY

(Washington, DC) (January 9, 2002) -- The latest data released today by the U.S. specialty steel industry comparing January/September 2001 to the same 2000 period indicate that the levels of import penetration remain high.

Specialty steel imports captured 25% of the U.S. market in the first nine months of 2001, while 23% of the U.S. market for stainless steel, the industry's largest product line, was lost to imports. Twelve month import penetration in 1999 was 26% for total specialty steel and 25% for total stainless steel, indicating little change in import penetration over recent years.

H.L. Kephart, Chairman of the Specialty Steel Industry of North America (SSINA), observed, "Recently, the U.S. International Trade Commission recommended that President Bush impose either tarrifs or tarrifs and quotas on some stainless steel products. According to press reports, the commission's findings 'spooked' many international steelmakers because of concerns about a Presidentially-imposed trade remedy. These same steelmakers must know that years of unfairly priced and subsidized imports flooding the only open market in the world have devastated our industry, as evidenced by the import penetration statistics. Potential tarriffs and quotas are meant to address this problem in the short-term to remedy the injury found by the U.S. International Trade Commission.

By product line, alloy tool steel was slammed the hardest. Faced with a 26 percentage point increase in import penetration for the first nine months of 2001 compared to the same 2000 period, alloy tool steel lost 93% of the U.S. market to imports.

Stainless steel rod placed second with import penetration at 78%. Stainless steel wire and stainless steel bar were a close third at 48% and 47%, respectively.

The data show a decrease in specialty steel imports of 27% and a sharp 20% drop in U.S. specialty steel consumption in January/September 2001 vs. January/September 2000. While stainless steel imports decreased 33%, consumption of stainless steel declined 21%. (See attached table for additional data on imports, U.S. consumption and import penetration for 2001/2000/1999.)

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, DC law firm of Collier Shannon Scott, PLLC, serves as lead counsel to SSINA.

U.S. Imports, Consumption and Market Penetration Data*
For Specialty Steel Product Lines
2001/2000/1999

 
 

 
Imports

 
U.S. Consumption

Nine Month
Import Penetration

 
Specialty Steel
Product Lines

Month
Sept.
2001

YTD
Sept.
2001

Increase/
Decrease
YTD
2001-00

Month
Sept.
2001

YTD
Sept.
2001

Increase/
Decrease
YTD
2001-00

YTD
Sept.
2001

YTD
Sept.
2000

Stainless Sheet/Strip

20,644

198,051

-39%

135,644

1,171,810

-21%

17%

22%

Stainless Plate

3,179

31,066

-45%

18,936

173,920

-14%

18%

28%

Stainless Bar

4,639

82,431

-17%

12,981

176,268

-15%

47%

48%

Stainless Rod

4,256

45,962

-30%

5,431

58,621

-32%

78%

76%

Stainless Wire**

2,161

23,497

-1%

3,700

48,540

-26%

48%

36%

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

34,879

381,007

-33%

176,675

1,629,158

-21%

23%

28%

Tool Steel

4,425

55,727

-2%

5,434

59,657

-30%

93%

67%

Electrical Steel

7,825

85,753

-5%

37,491

371,712

-14%

23%

21%

Total Specialty

47,129

522,487

-27%

219,599

2,060,526

-20%

25%

28%


2000 and 1999 statistical data in tons follow:

 
 

 
Imports

 
U.S. Consumption

Twelve Month
Import Penetration

 
Specialty Steel
Product Lines

 
2000
 

Percent
Increase/
Decrease

 
2000
 

Percent
Increase/
Decrease

 
2000
 

 
1999
 

Stainless Sheet/Strip

388,263

-5%

1,896,324

-0.03%

20%

21%

Stainless Plate

65,622

9%

253,559

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***
(Sheet, Strip, Plate, Bar, Rod & Wire)

692,726

7%

2,608,940

2%

27%

25%

Tool Steel

78,629

6%

114,227

1%

69%

65%

Electrical Steel

122,654

7%

565,608

10%

22%

22%

Total Specialty

894,009

7%

3,288,775

4%

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 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