FOR IMMEDIATE RELEASE:

Date: August 3, 2001

(Washington DC) -- Data released today by the Specialty Steel Industry of North America (SSINA) reflect that imports of total specialty steel for the period covering January through April 2001 totaled 254,573 tons, a 23% decline from the same 2000 period.

But the data also indicate that the share of the U.S. market captured by these imports did not budge. Specialty steel imports captured 27% of the domestic market in the first four months of this year, a one percentage point decrease from the comparable period last year. For individual product lines, import penetration ranged between 18% and 91%.

Further, the data show that the specialty steel products covered by the Section 201 trade case recently initiated by the Bush Administration have been particularly hard hit by imports. The 201 case includes stainless cut plate, stainless bar, rod, and wire, alloy tool steel and electrical steel. Although stainless steel bar and rod imports have decreased in 2001, they are still above historical levels. The International Trade Commission will be reviewing the past five years in its injury determination. Import penetration has also skyrocketed during this period.

SSINA Chairman H. L. Kephart, President and Chief Executive Officer of G. O. Carlson, Inc., a specialty steel producer in Thorndale, Pennsylvania, stated "Below-cost pricing and import surges by foreign producers reacting to overcapacity issues and weak economies in their home countries have been the norm for years. Combine this with excessive foreign government subsidization and market distorting practices, and you have a playing field so tilted that U.S. producers find it difficult, if not impossible, to realize adequate returns. We look to the President's initiative on steel and the Section 201 case initiated by the Bush Administration to provide relief."

According to Kephart, "In 1990, specialty steel imports were approximately 373,000 tons and import penetration was 17%. Ten years later, by 2000, imports more than trebled to 894,000 tons, and import penetration more than doubled. Last year the industry lost more than a quarter of the U.S. market 28% to imports that for the most part were unfairly traded."

Kephart also noted, "Monthly data show an ominous upward trend in imports. Total specialty steel imports in April 2001 were 64,805 tons, the highest level this year."

Imports of stainless steel, the industry's largest product line, decreased 31% YTD April 2001 compared to the same period last year. In the long subproduct category (stainless steel bar, rod and wire), stainless steel wire imports increased 10% compared to the 2000 period, and import penetration increased 15 percentage points to 47%. Although stainless steel bar and rod imports decreased 7% and 20%, respectively, import penetration for stainless steel bar was 47% the same as last year and stainless steel rod was 79%, a 5 percentage point increase.

Imports of flat products, i.e., stainless steel sheet/strip and stainless steel plate, decreased 40% and 47%, respectively, in YTD April 2001 vs. same 2000 period. Import penetration for stainless steel sheet/strip was 18% in the first four months of this year; stainless steel plate import penetration was 20%.

Alloy tool steel and electrical steel imports both increased 11% in the first four months of this year compared to YTD April 2000. A huge 91% of the U.S. market for alloy tool steel was captured by imports. Import penetration for electrical steel was 25%.

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 14% of the total value of all steel shipped.

David A. Hartquist, an international trade attorney with the Washington, DC law firm Collier Shannon Scott, PLLC, serves as lead counsel to SSINA.

Note to Editors: See attached table for more information on U.S. imports, consumption and market penetration data.

2000 and 1999 statistical data in tons follow:

	Imports		U.S. Consumption		Twelve Month Import Penetration
Specialty Steel Product Lines	2000	Percent Increase/ Decrease	2000	Percent Increase/ Decrease	2000	1999
Stainless Sheet/Strip	388,263	-5%	1,896,324	0%	20%	21%
Stainless Plate	65,622	9%	253,559	1%	26%	24%
Stainless Bar	125,725	44%	267,115	22%	47%	40%
Stainless Rod	82,056	25%	108,910	15%	75%	69%
Stainless Wire**	31,059	26%	83,032	-2%	37%	29%
Total Stainless Steel*** (Sheet, Strip, Plate, Bar, Rod & Wire)	692,726	7%	2,608,940	2%	27%	25%
Tool Steel	78,629	6%	114,227	1%	69%	65%
Electrical Steel	122,654	7%	565,608	10%	22%	22%
Total Specialty	894,009	7%	3,288,775	4%	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 for 2001 estimated and subject to revision when actual data is received.

*** Shipment and consumption data for these categories may be overstated due to inclusion of shipments from wire redrawers which are aready included in shipments/imports of rod; consequently import penetration may be slightly understated.

Prepared by Georgetown Economic Services for the Specialty Steel Industry of North America