FOR IMMEDIATE RELEASE:
October 5, 2000

(Washington, DC) - Imports of stainless steel shot up 31% in the first seven months of 2000, during a period when domestic consumption rose 16%, compared to the same 1999 period, according to data released today by the Specialty Steel Industry of North America (SSINA). The statistics reflect that these imports captured 29% of the U.S. market, a 3% increase over 1999.

"North American stainless steel producers should be reaping the rewards of a healthy appetite for stainless steel in the U.S., coupled with a strong economy. Instead, we continue to lose market share to foreign mills that use unfair trade tactics and take advantage of unfair subsidies provided by their governments to export and sell their excess production in the U.S. In the near future, SSINA will release a study on this troublesome issue of foreign overbuilt capacity," said SSINA Chairman H. L. Kephart, also President and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, PA.

For total specialty steel, the data reflect that imports increased 26% in the January through July 2000 period vs. the same 1999 period. Specialty steel includes alloy tool steel, electrical steel, and stainless steel, which is by far the industry's largest product line.

The 31% increase in imports of stainless steel translates into 463,621 tons of offshore product arriving in the U.S. in the first seven months of 2000 compared to 352,950 tons for the same 1999 period. Individual stainless steel product lines were slammed with corresponding increases in import. Stainless steel bar imports rocketed to a 77% increase over last year to 79,102 tons from 44,684 tons. Imports of the other stainless steel products also increased substantially - ranging from 53% to 16% -- as follows: rod, 53% to 52,628 from 34,403 tons; plate, 43% to 48,388 from 33,912 tons; wire, 40% to 18,702 from 13,379 tons. Sheet/strip, the largest stainless steel product category, increased 17% to 264,801 from 226,572 tons.

Imports of total specialty steel captured 28% of the U.S. market in the YTD July 2000 period compared to 26% for the same 1999 period. With the exception of a less than 1% decrease in import penetration for electrical steel, specialty steel product lines continued to lose U.S. market share to imports. Import penetration for stainless steel rod was 75%, up 9%; alloy tool steel was 66%, up 1%; stainless steel bar was 48%, up 11%; stainless steel wire was 37%, up 10%; stainless plate was 30%, up 5%; and stainless sheet/strip was 22%, up 1% over last year.

Total specialty steel consumption increased 16% to 2,038,676 tons from 1,763,969 tons for the January to July 2000 period compared to the same 1999 period.

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 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 Scott, PLLC, serves as lead counsel to the SSINA.