FOR IMMEDIATE RELEASE:
September 1, 2000

(Washington DC) - Imports of specialty steel for January through June 2000 increased 28% compared to the same 1999 period, according to data released today by the Specialty Steel Industry of North America (SSINA).

"Total specialty steel imports reached 502,856 tons, an average of 84,000 tons per month, in the first six months of this year, with average monthly imports during the second quarter even exceeding the first quarter rate of 82,000 tons. Imports for all of 1999 totaled 834,412 tons, a monthly average of 69,500 tons. At the current rate, imports of specialty steel in 2000 could surpass a million tons for the first time in industry history," said SSINA Chairman H.L. Kephart, also President and Chief Executive Officer of G.O. Carlson, Inc., a specialty steel producer in Thorndale, PA. "I will be testifying on Capitol Hill this month on behalf of the specialty steel industry. With imports continuing on this track, our goal is to ensure that unfair pricing tactics and foreign government subsidization of new and existing capacity remain high profile issues and are addressed in a timely manner. They are of critical importance to our industry and workers."

The data reflect a 34% increase in imports of stainless steel, the industry's largest product line, for YTD June 2000 compared to the same 1999 period. Likewise, individual stainless steel subproduct lines saw major increases in imports for YTD June 2000 vs. last year's first-six-month total. Stainless steel bar imports increased most dramatically, 82%, to 68,458 tons (from 37,648), followed by rod, 58% to 44,939 tons (from 28,407); plate, 51% to 42,551 tons (from 28,237); wire, 39% to 15,837 tons (from 11,356); and sheet/strip, 19% to 230,303 tons (from 193,556). Imports of other specialty steel products, specifically alloy tool steel and electrical steel, saw mixed results. Electrical steel imports increased 17% to 62,788 tons (from 53,819); alloy tool steel decreased 2% to 37,979 tons (from 38,857).

Data for the first six months of 2000 compared to January-June 1999 reflect that specialty steel imports overall and by product line continue to capture an increasing share of the U.S. market. Total stainless steel import penetration increased 3 percentage points to 28% for YTD June 2000. Stainless steel rod imports captured almost three-quarters of the U.S. market, 74%, up 10 percentage points from interim 1999; while bar imports captured almost half of the market, 47%, up 11 percentage points. Stainless steel wire import penetration was at 35%, up 9 percentage points; plate was at 29%, up 5 percentage points; and sheet/strip was up 1 percentage point to 22%.

U.S. consumption of both total specialty and stainless steel for YTD June 2000 increased 18% compared to the same 1999 period. Consumption, however, declined in the 2nd quarter of 2000 compared to the 1st quarter: specialty steel consumption declined 2% and stainless steel consumption declined 3%.

SSINA is a Washington, D.C.-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.