FOR IMMEDIATE RELEASE:

Date: November 8, 2001

(Washington DC) (November 8, 2001) -- Data released today by the Specialty Steel Industry of North America (SSINA) reflect that the U.S. markets for individual specialty steel product sectors, particularly stainless steel bar, rod, and wire and tool steel, continue to be hammered by imports that seize ever-increasing market share.

H.L. Kephart, Chairman of the Specialty Steel Industry of North America (SSINA), further noted that import tonnage in July for total specialty steel and stainless steel, the industry's largest product line, increased after a period of decline. Said Kephart, "In July, total specialty steel imports amounted to 56,705 tons, a 9% increase over June 2001, while total stainless steel imports increased 19% to 43,553 tons. These increases occurred despite an 8% decline in the U.S. consumption of specialty steel between June and July 2001 and a 4% decrease in stainless steel consumption between the two months."

Kephart also commended the recent conclusion of the International Trade Commission (ITC) that imports of stainless steel bar, rod, and wire and alloy tool steel are seriously injuring the U.S. specialty steel industry, but expressed puzzlement and disappointment on the ITC's negative vote on stainless steel cut plate. "Domestic market share for every one of these product sectors has been severely undercut by the import surges the industry has been battling for years. And now, like the rest of America, our companies and employees are dealing with an economy struggling in the wake of the events of September 11. Specialty steels are critical to our economy, national defense system, and the health and well-being of all Americans. It is now more important than ever that we regain our competitive position. We believe temporary import relief, coupled with efforts under the President's steel initiative to reduce worldwide overcapacity and fight dumping and foreign government subsidies, will allow this to happen."

The data, which compares January to July 2001 with the same 2000 period, show that imports of stainless steel rod captured more than three-quarters - 78% - of the U.S. market in YTD July 2001, a 3% increase over 2000. Similarly, almost half of the U.S. markets for stainless steel bar and wire were lost to imports. Stainless steel wire import penetration increased 11% to 47%. Stainless steel bar import penetration remained at 48% for the seven month period. Tool steel imports captured almost the entire U.S. market - 96% - reflecting a 30% increase over last year.

Total specialty steel imports declined 27% in the first seven months of this year compared to the same 2000 period, while imports of stainless steel decreased 33%. Even with these declines, however, import penetration was 26% for total specialty steel and 24% for total stainless steel.

Imports of stainless steel sheet/strip and plate decreased 41% and 49%, respectively, in YTD July 2001 vs. 2000. Import penetration for both product sectors was 18%. Electrical steel imports declined 6% with import penetration at 23%.

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, D.C. law firm of 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	-0.03%	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 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