NEWS RELEASES - 1999

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FOR IMMEDIATE RELEASE:

Contact:

Meg Mullery

202.342.8439

1999 vs. 1998 Specialty Steel Imports Decline, with Exceptions

Insignificant Change in Import Penetration

(Washington, D.C.) - Latest statistical data released today by the Specialty Steel Industry of North America (SSINA) reflect a continuing downward trend in imports compared to 1998, but virtually no change in import penetration.

Import penetration for total specialty steel products for the first nine months of 1999 compared to the same period last year declined 1.5-percentage points to 25.4% from 26.9%. Domestic consumption also declined when comparing the two nine-month periods: total specialty steel consumption went down 4% to 2,317,558 from 2,408,420 tons.

SSINA Chairman James F. Will said, "Although we continue to see a downward trend in total imports compared to 1998, we also note that imports of specific product lines appear to be increasing month to month in 1999. This is particularly troublesome and there are indications that some imports not subject to recent successful trade cases are being dumped in this market. It's a situation the industry is watching with great concern."

Total specialty steel imports from January through September 1999 declined 9% to 589,560 from 648,709 tons compared to the first nine months of 1998. Specialty steel product lines include stainless steel sheet and strip (the industry's largest product line), plate, bar, rod, wire, and tool and electrical steel. With the exception of tool steel, imports of major product lines declined between 2% and 26% between January through September 1999 vs. the same 1998 period. Tool steel imports increased 7% to 56,109 from 52,361 tons.

Imports of stainless steel flat products - sheet/strip and plate - declined 9% to 329,902 from 360,815 tons; long products - stainless steel bar, rod, and wire - declined 10% to 123,051 from 144,267 tons. (For more information on imports, U.S. consumption, and import penetration, see attached table.)

The Specialty Steel Industry of North America is a Washington, D.C.-based trade association representing 16 companies employing over 25,000 workers across North America. 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 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)

					Nine Month Import
	Imports		U.S. Consumption		Penetration
Specialty Steel	YTD	Percent	YTD	Percent	YTD	YTD
Product Lines	September	Increase/	September	Increase/	September	September
	1999	Decrease	1999	Decrease	1999	1998
Stainless Sheet/Strip	287,192	-9%	1,396,538	1%	21%	23%
Stainless Plate	42,710	-9%	182,133	-14%	23%	22%
Stainless Bar	59,232	-19%	156,226	-16%	38%	39%
Stainless Rod	46,066	-2%	67,959	-4%	68%	67%
Stainless Wire**	17,752	-26%	55,076	-23%	32%	34%
Total Stainless Steel*** (Sheet, Strip, Plate, Bar, Rod & Wire)	452,953	-10%	1,857,931	-3%	24%	26%
Tool Steel	56,109	7%	85,791	2%	65%	62%
Electrical Steel	80,498	-12%	373,907	-7%	22%	23%
Total Specialty Steel	589,560	-9%	2,317,558	-4%	25%	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.