NEWS RELEASES - 1999

Back to 1999 News Releases

FOR IMMEDIATE RELEASE:

Contact:

Meg Mullery

202.342.8439

SPECIALTY STEEL IMPORTS INCREASING IN 1999

U.S. Producers Continue to be Concerned About Global Overcapacity and Below Cost Pricing Practices of Foreign Producers

(Washington, D.C.) - Imports of specialty steel continued to increase this year through April 1999, capturing a substantial share of the U.S. market, according to data released today by the Specialty Steel Industry of North America (SSINA). "In no way is the specialty steel import crisis over," said James F. Will, Chairman, President and CEO of Armco Inc., and SSINA Board of Directors Chairman. "Imports remain high in our largest product line, stainless steel sheet and strip, increasing each month this year from 27,504 tons in January to 36,226 tons in April. Foreign producers obviously have tried to 'beat the clock' in our trade cases, shipping in substantial volumes before the Department of Commerce announced antidumping and countervailing duty margins of up to 60 percent in May," Will said. "The annual consumption of stainless steel in the U.S. continues to grow. However, the current import penetration rate remains the same as in 1998. Furthermore, monthly data shows an ominous upward trend in imports, from 55,503 tons in January to 65,630 tons in April."

Will, commenting on a recent statement by Commerce Secretary William Daley that the steel crisis 'is over,' explained, "We are hopeful that our unfair trade cases will continue to result in the imposition of some hefty antidumping and countervailing duties, with many foreign producers no longer getting a free ride. The industry is still faced with tremendous global overcapacity and is trying to dig out from years of battling unfairly traded imports." (See attached Status of Unfair Trade Cases by Major Product Line Filed in 1997 and 1998.)

Stainless sheet and strip, the industry's largest product line, is currently the subject of an unfair trade case that is headed toward a final International Trade Commission determination on injury within the next couple of weeks. Using Japan as an example, Will noted, "The U.S. market for cold-rolled products is roughly 1.1 million tons. However, Japanese capacity in these products is nearly twice that level. This tremendous capacity, coupled with a weakening in Japan's other export markets, has led to overproduction and an increase in dumped shipments to the United States. Below-cost pricing continues to prevent U.S. producers from realizing adequate returns. Other nations have similarly built capacity far beyond their needs and blitzed the U.S. market with dumped and subsidized stainless steel."

The statistics released today compare imports, exports, apparent consumption, and import penetration for year-to-date April of this year with the same period in 1998. The comparison shows that imports of all stainless steel product lines -- sheet and strip, plate, bar, rod, and wire -- and electrical steel reflect declines from 1998, but imports' overall market share is constant. As to individual product lines, stainless steel wire showed a 35% decrease in imports, from 10,375 tons to 6,715 tons, followed closely by a 33% decrease in imports of stainless steel bar products, from 34,243 to 22,994 tons. Import penetration for both products declined only 4%.

(For additional information, see attached imports, consumption, and market penetration data attached.)

The Specialty Steel Industry of North America is a Washington, D.C.-based trade association representing virtually all continental producers of stainless steel and alloy tool steels, electrical steels, super alloys, and other high technology metals.

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)

					Four Month Import
	Imports		U.S. Consumption		Penetration
Specialty Steel	YTD	Percent	YTD	Percent	YTD	YTD
Product Lines	April	Increase/	April	Increase/	April	April
	1999	Decrease	1999	Decrease	1999	1998
Stainless Sheet/Strip	124,736	-6%	586,990	-9%	21%	21%
Stainless Plate	16,276	-19%	73,871	-25%	22%	21%
Stainless Bar	22,994	-33%	66,887	-25%	34%	38%
Stainless Rod	17,588	-21%	27,553	-19%	64%	65%
Stainless Wire**	6,715	-35%	24,597	-26%	27%	31%
Total Stainless Steel*** (Sheet, Strip, Plate, Bar, Rod & Wire)	188,308	-14%	779,898	-13%	24%	24%
Tool Steel	23,132	-1%	37,082	-4%	62%	61%
Electrical Steel	33,259	12%	161,857	-11%	21%	21%
Total Specialty Steel	244,698	-13%	978,837	-12%	25%	25%

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%. The ITC will vote on "final injury" on or about July 7, 1999.