FOR IMMEDIATE RELEASE: February 19, 2002
Contact: |
Meg Mullery |
202.342.8439 |
U.S. Specialty Steel Industry Confronts
Increased Import Penetration
(Washington DC) (February 19, 2002) -- With the March 6
deadline looming for President Bush's decisions on steel
imports, the Specialty Steel Industry of North America (SSINA)
today released data reflecting that the majority of specialty
steel product lines were confronted with substantial increases
in import penetration last year. One product line, alloy tool
steel, effectively lost the entire U.S. market to imports.
Alloy tool
steel import penetration in January/November 2001 increased 26
percentage points over the same 2000 period, capturing 94% of
the U.S. market. The data (the most current available) also
reflect that import penetration for stainless steel rod was
79%, an increase of four percentage points; stainless steel
wire was 50%, an increase of 13 percentage points; and
electrical steel increased one percentage point to 22% import
penetration. Stainless steel bar import penetration was 46%
for the 2001 eleven-month period, a decline of only one
percentage point.
Said SSINA
Chairman H.L. Kephart, "Despite the U.S. economic slump and
decline in demand, many foreign producers, lacking viable
markets in their own countries, continue to flood the U.S.
market -- the most open in the world -- with unfairly traded
imports that seize market share from competitive and efficient
U.S. specialty steel producers and their workers."
"Free
trade exists only when fair market prices prevail," Kephart
continued. "Fair market prices cannot prevail, however, when
foreign government subsidization, imports that are priced at
less than fair value, and global overcapacity distort the
mechanics of the world trading system."
The data
reflect that import penetration for total specialty steel and
total stainless steel, the industry's largest product line,
varied little in 2001, 2000 and 1999. Year-to-date November
2001 import penetration for total specialty steel was 25%
compared to 27% for the same 2000 period and 26% for all of
1999. Likewise, total stainless steel was 24% compared to 27%
for YTD November 2000 and 25% for 1999.
For each
of the seven specialty steel product lines (stainless steel
sheet/strip, plate, bar, rod, wire, and tool and electrical
steel), imports declined between 3% and 33%. U.S. demand for
these products, however, dropped between 10% and 31%, even as
certain specialty steel imports continue to capture more of
the U.S. market. (See attached table for more information on
U.S. imports, consumption and market penetration data for
specialty steel product lines in 2001/2000/1999.)
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.
|
Imports |
U.S. Consumption |
Nine Month Import
Penetration |
Specialty Steel Product
Lines |
Month Nov. 2001 |
YTD Nov. 2001 |
Increase/ Decrease YTD 2001-00 |
Month Nov. 2001 |
YTD Nov. 2001 |
Increase/ Decrease YTD 2001-00 |
YTD Nov. 2001 |
YTD Nov. 2000 |
Stainless Sheet/Strip |
22,982 |
245,245 |
-33% |
123,382 |
1,428,842 |
-18% |
17% |
21% |
Stainless Plate |
5,699 |
42,169 |
-33% |
18,310 |
213,365 |
-10% |
20% |
27% |
Stainless Bar |
5,890 |
95,153 |
-19% |
14,539 |
208,060 |
-16% |
46% |
47% |
Stainless Rod |
5,142 |
56,402 |
-27% |
6,541 |
71,824 |
-30% |
79% |
75% |
Stainless Wire** |
2,181 |
28,031 |
-3% |
3,611 |
56,612 |
-28% |
50% |
37% |
Total Stainless Steel*** (Sheet, Strip,
Plate, Bar, Rod & Wire) |
41,894 |
466,999 |
-29% |
166,382 |
1,978,704 |
-18% |
24% |
27% |
Tool
Steel |
4,595 |
66,582 |
-5% |
4,607 |
71,102 |
-31% |
94% |
68% |
Electrical Steel |
8,540 |
98,403 |
-12% |
37,293 |
445,340 |
-15% |
22% |
21% |
Total Specialty |
55,029 |
631,985 |
-24% |
208,282 |
2,495,146 |
-18% |
25% |
27% |
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 |
-0.03% |
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 the 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
|