NEWS RELEASES - 1999

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FOR IMMEDIATE RELEASE:

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Meg Mullery

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SPECIALTY STEEL IMPORTS CONTINUE DOWNWARD TREND

But Industry Executive Warns Congress that Import Crisis is Far From Over

(Washington, D.C.) - Economic data released today by the Specialty Steel Industry of North America (SSINA) indicate that imports of specialty steel for the first seven months of 1999 compared to the same 1998 period continue the downward trend that began earlier this year with the successful culmination of unfair trade cases filed by the industry over the past two years.

Total specialty steel imports for January through July 1999 compared to the same period last year decreased 10% to 461,630 from 512,535 tons. Except for alloy tool steel, which increased 5%, imports of individual product lines decreased between 6% and 30%, as follows: stainless sheet and strip, the industry's largest product line, down 6%, to 226,572 from 241,566 tons; stainless plate, down 12% to 33,911 from 38,566 tons; stainless bar, down 24% to 44,684 from 58,430 tons; stainless rod, down 9% to 34,404 from 37,655 tons; stainless wire, down 30% to 13,379 from 19,028 tons; electrical steel, down 15% to 63,769 from 74,682 tons.

Testifying before the Congressional Steel Caucus on October 6, Bill Pendleton, Director of Corporate Affairs for Carpenter Technology Corporation in Reading, Pennsylvania, explained that although the absolute volume of specialty steel imports have declined both overall and by product since last year, the steel import crisis is certainly not over. According to Pendleton, "There are three reasons for this: First, import penetration has remained essentially constant for each product line and in total. Therefore, the negative pricing and profit impact continues in a down market. Second, for some products, such as stainless bar, the effects of current imports are compounded by the residual effect of imports that came into the U.S. last year, but were kept in distribution inventories and have been entering into our markets this year. Current imports plus the inventoried past imports have had a severely injurious effect on U.S. producers during 1999. The third factor is the agonizingly slow administrative process coupled with the often extensive time required to realize the protective effects of successful trade cases. As a result of these three factors, we can categorically say that the import crisis for our industry is definitely not over." (For additional information, see attached imports, consumption and market penetration table and status report on unfair trade cases.)

The Specialty Steel Industry of North America is a Washington, D.C.-based trade association representing 15 companies employing over 25,000 workers across North America. Specialty steels are high technology, high-value stainless and other special alloy products sold by the pound rather than by the ton. 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 SSINA.

U.S. Imports, Consumption and Market Penetration Data*
For Specialty Steel Product Lines
1999/1998/1997
(Short Tons)

					Seven Month Import
	Imports		U.S. Consumption		Penetration
Specialty Steel	YTD	Percent	YTD	Percent	YTD	YTD
Product Lines	July	Increase/	July	Increase/	July	July
	1999	Decrease	1999	Decrease	1999	1998
Stainless Sheet/Strip	226,572	-6%	1,047,385	-3%	22%	22%
Stainless Plate	33,911	-12%	137,816	-19%	25%	23%
Stainless Bar	44,684	-24%	121,612	-20%	37%	38%
Stainless Rod	34,404	-9%	51,668	-10%	67%	66%
Stainless Wire**	13,379	-30%	42,738	-25%	31%	32%
Total Stainless Steel*** (Sheet, Strip, Plate, Bar, Rod & Wire)	352,950	-11%	1,401,218	-8%	25%	26%
Tool Steel	44,911	5%	68,175	-0%	66%	62%
Electrical Steel	63,769	-15%	288,010	-10%	22%	23%
Total Specialty Steel	461,630	-10%	1,757,403	-8%	26%	27%

1998 and 1997 stastical data in tons follow:

	Imports		U.S. Consumption		Import Penetration
		Percent		Percent
Specialty Steel	1998	Increase/	1998	Increase/	1998	1997
Product Lines		Decrease		Decrease
Stainless Sheet/Strip	416,740	15%	1,843,557	6%	23%	21%
Stainless Plate	56,572	-7%	266,470	-6%	21%	21%
Stainless Bar	94,306	3%	235,760	-7%	40%	36%
Stainless Rod	61,988	-23%	90,403	-20%	69%	72%
Stainless Wire**	30,572	2%	47,453	0%	64%	63%
Total Stainless Steel*** (Sheet, Strip, Plate, Bar, Rod & Wire)	660,178	6%	2,483,641	2%	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	852,826	7%	3,108,825	2%	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 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.

Stainless Steel Producers and Unions
Status of Unfair Trade Cases by Major Product Line Filed in 1997 and 1998

Product	Stainless Steel Rod
Date Filed	July 30, 1997
Named Countries	Italy, Germany, Japan, Korea, Spain, Sweden, Taiwan
Status	The case concluded with the issuance of final antidumping and countervailing duty (CVD) orders by the Commerce Department on 9/15/98. The duties range up to 34%, with penalties extending back to 3/5/98. The International Trade Commission (ITC) voted on final injury determination on 9/1/98. Excluding Germany, ITC concluded that imports from six of the seven named countries caused injury to producers.
Next Step	On 10/15/98, appeals were filed with Court of International Trade. Successful appeals would result in a significant increase in the antidumping duties levied on imports from Korea and the assessment of antidumping duties on imports from Germany. The industry will vigorously pursue the appeals process with the hope of a decision by yearend 1999.

Product	Stainless Steel Round Wire
Date Filed	March 27, 1998
Named Countries	Canada, India, Japan, Korea, Spain, Taiwan
Status	On 6/4/98, the ITC preliminarily determined that imports from the named countries are injuring the domestic industry. On 11/13/98, Commerce set preliminary antidumping duties ranging up to 36% on imports from the subject countries. On April 5, final antidumping duties ranging up to 36% were announced by Commerce.
Case Concludes	On 5/10/99, The ITC voted against injury. To date, no decision has been made on appealing the ITC determination.

Product	Stainless Steel Plate in Coils
Date Filed	March 31, 1998
Named Countries	Belgium, Canada, Italy, South Korea, South Africa, Taiwan
Status	On 5/15/98, the ITC voted preliminarily that imports from the named countries are injuring the domestic industry. On 9/1/98, Commerce issued preliminary CVD determinations against Korea, Italy, Belgium, and South Africa ranging up to 15%. On 10/27/98, Commerce announced preliminary antidumping duties ranging up to 68% on imports from the six named countries. Subsequently, on 12/3/98, Commerce published a revised preliminary determination on imports from Taiwan and took the extremely unusual step of finding that Taiwanese producer Ta Chen Stainless Pipe and its U.S. subsidiary, Ta Chen International, engaged in "middleman dumping" of coiled stainless steel plate produced by Yieh United Steel Corp. On March 22, 1999, Commerce issued final antidumping duties ranging between 7% and 45% and countervailing duties ranging between 2% and 15%.
Case Concludes	On 4/22/99, the ITC voted unanimously in favor of injury. Antidumping and CVD orders have been issued.

Product	Stainless Steel Sheet and Strip in Coils
Date Filed	June 10, 1998
Named Countries	France, Germany, Italy, Japan, Mexico, South Korea, Taiwan, United Kingdom
Status	On 7/24/98, the ITC voted preliminarily that imports from the named countries are injuring the domestic industry. On 10/30/98, U.S. producers requested that Commerce apply the "critical circumstances" provision of U.S. trade laws to combat recent import surges. An affirmative finding would impose antidumping duties retroactively to 9/18/98. On 11/10/98, Commerce announced preliminary CVD rates ranging up to 29% against France, Italy and South Korea. On 12/18/98, Commerce announced preliminary antidumping duty margins ranging up to 59%; and decided favorably on "critical circumstances" as to Germany, Japan (Nippon Metals, Nippon Yakin, and Nisshin only) and Korea (Taihan Electric Wire Co. only). "Critical circumstances" were not found for Italy and Taiwan.
Case Concludes	On 5/20/99, Commerce announced final antidumping and CVD duties ranging up to 60%. On 7/7/99, the ITC voted affirmatively in favor of injury. Antidumping and CVD orders have been issued.