Feb. 2, 2006 — Based on preliminary Census Bureau data for December, the American Iron and Steel Institute (AISI) reported that the United States imported a total of 31,915,000 net tons of steel in 2005. The total reflects a 10.9% decrease compared to 2004, which saw a surge of imports (to 35.8 million net tons, the third highest in history) and a large buildup of steel inventories held by customers.

Total imports included 25,053,000 net tons of finished steel, a decrease of 11.7% compared to 2004 imports of finished steel. Despite the decrease, finished steel imports in 2005 were the fifth-highest in history.

Compared to the year before, imports in 2005 were substantially higher in a number of product lines, including:

• Oil country goods, +50%
• Galvanized electrolytic sheets & strips, +39%
• Cold finished bars, +35%
• Cut-length plates, +21%
• Tin plate, +19%
• Mechanical tubing, +17%

December Imports—December 2005 steel imports totaled 2,726,000 net tons, 13.2% higher than the previous month (November 2005). The December 2005 total includes 2,055,000 net tons of finished steel, up 6.3% over November 2005.

December 2005 imports increased significantly compared to the month before in many categories, including

• Hot rolled sheets +40%
• Cold rolled sheets, +20%
• Semi finished steel, +42%
• Wire rods, +39%
• All other metallic coated sheets & strips, +29%
• Bars–light shapes, +24%
• Cut-length plates, +22%

Finished steel imports from China in 2005 were up 26% compared to 2004 -- and up 256% vs. 2003. Notable monthly gains (November-December 2005) were registered by a number of countries that have a history of currency manipulation and unfair trading, including South Korea (+72%), and China (+58%).

Comparing 4th Quarter 2005 to 3rd Quarter 2005, steel imports were up significantly from a number of countries – including, most prominently, India (+232%), Taiwan (+56%) and South Korea (+40%). U.S. spot prices in December for hot and cold-rolled sheet per ton rose slightly from the previous month (from $535 to $550, and from $630 to $640), according to data publicly reported by Purchasing Magazine. Year-over-year price declines for these products (December 2005 vs. December 2004) were 16.7% and 14.7%, respectively.

“Overall import totals in 2005 showed only modest reductions (and, for some products, gains) from the high levels of 2004, even in a period of inventory reduction for a number of products," said John P. Surma, President and CEO of United States Steel Corp. and Chairman of AISI. "While fairly traded imports should be and are free to compete vigorously in this market, the problem of unfair trade continues to confront this and many other U.S. manufacturing industries. With U.S. trade remedy laws under assault in current WTO negotiations, we will have no higher priority in 2006 than working with U.S. officials to ensure that antidumping and anti-subsidy disciplines are fully preserved."

Andrew G. Sharkey, AISI President and CEO, added that, “In view of the massive excess steel capacity that already exists in China, the huge steel capacity additions that are occurring offshore (much of them with state support), and the continued presence of dumped and subsidized imports in the U.S. market, there will be a need for ongoing, close vigilance of steel imports in the United States throughout 2006.”