NEWS RELEASES - 1999

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FOR IMMEDIATE RELEASE:

Contact:

Meg Mullery

202.342.8439

TRADE CASE WINS AFFECT STAINLESS STEEL IMPORTS

(Washington, D.C.) - Economic data for the first six months of 1999 released today by the Specialty Steel Industry of North America (SSINA) clearly indicate that foreign producers shipped substantial volumes between January and May to avoid anticipated antidumping and countervailing duties ranging up to 60% that recently were imposed on two product lines, stainless steel sheet and strip in coils and plate in coils.

Imports of stainless steel sheet and strip, the industry's largest product line, increased progressively each month this year - from 27,504 tons in January to 39,651 tons in May - with June imports of the product line dropping back to 27,885 tons. Likewise, stainless steel plate imports increased from 2,671 tons in January to 7,150 tons in May, and dropped back to 4,812 tons in June.

Specialty steel imports for all product lines - stainless steel sheet and strip and plate, bar, rod, wire, alloy tool steel, and electrical steel - decreased to 64,104 tons in June, following a high for the year of 81,792 tons in May. However, the data also reflect that June specialty steel imports remain high compared to January 1999 when total specialty steel imports were at 55,503 tons.

Comparing January to June 1999 cumulative imports with the same 1998 period, total specialty steel imports decreased 8%, from 427,411 to 391,879 tons. With the exception of alloy tool steel, which shows a 6% increase in imports, individual product lines reflect a parallel decrease: sheet and strip, down 3%; plate, down 14%; bar, down 25%; rod, down 9%; wire, down 29%; and electrical steel, down 12%. Notably, import penetration, the share of the U.S. market captured by imports, remains virtually stagnant with little or no change between the two periods. (For additional information, see attached import, consumption, and market penetration data.)

"Antidumping and countervailing duties imposed on illegal dumped and subsidized imports stemming from the trade cases that the stainless steel industry has filed to date are starting to have a positive effect," said James F. Will, Chairman, President and CEO of Armco Inc., and SSINA Board of Directors Chairman. According to Will, "We are grateful to see this indication that imports may be declining on a year-to-year comparison basis, but we will continue to closely monitor the monthly volume of imports. Over the past years, our industry has taken a hammering from unfair trading activities and we look forward to being able to compete on a level playing field once again."

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)

					Six Month Import
	Imports		U.S. Consumption		Penetration
Specialty Steel	YTD	Percent	YTD	Percent	YTD	YTD
Product Lines	June	Increase/	June	Increase/	June	June
	1999	Decrease	1999	Decrease	1999	1998
Stainless Sheet/Strip	193,556	-3%	905,675	-3%	21%	21%
Stainless Plate	28,237	-14%	117,652	-19%	24%	23%
Stainless Bar	37,648	-25%	103,821	-22%	36%	38%
Stainless Rod	28,406	-9%	44,058	-10%	64%	64%
Stainless Wire**	11,356	-29%	37,700	-24%	30%	32%
Total Stainless Steel*** (Sheet, Strip, Plate, Bar, Rod & Wire)	299,203	-9%	1,208,906	-8%	25%	25%
Tool Steel	38,857	6%	59,570	1%	65%	62%
Electrical Steel	38,820	-12%	252,297	-7%	21%	23%
Total Specialty Steel	391,879	-8%	1,520,773	-7%	26%	26%

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.