Based on preliminary Census Bureau data, the American Iron and Steel Institute (AISI) reported September imports of steel into the United States were the highest import levels in four years — 3,467,000 net tons, including 2,714,000 net tons of finished steel.

Year-to-date (YTD) imports in both categories are up over 47% compared to the same period last year. The 47% gain in finished steel imports is nearly three times the 16.3% gain in steel consumption. As a result, steel import penetration in the United States in this period has jumped from 16 to 20%.

Finished steel imports in the 3rd quarter of this year were 18% higher than the second quarter, and 86% higher than the same quarter last year. For the YTD compared to 2003, imports are up significantly in almost all major product lines, including hot-rolled sheet, where they are up 58%.

“As this week’s headlines have again made clear, the steel industry of the United States is engaged in an ongoing, historic period of consolidation, restructuring and investment. These steps will help preserve and strengthen the steel-intensive manufacturing base of the U.S. and Nafta region,” stated David S. Sutherland, President and CEO of Ipsco Inc. and Chairman of AISI. “Against the background of high import levels and growing inventories,” Sutherland said, “it is critical that the industry’s progress and its pro-customer investments in new processes and products not be undermined by a new surge of dumped and subsidized imports. Rules-based trade and effective trade law enforcement remain critical to the future of our world class steel industry, because market forces have not been restored throughout all of the global steel sector.”

In this regard, Andrew G. Sharkey III, AISI President and CEO, noted that, “In recent months, there have been scores of published articles about plans for massive new steel capacity increases outside the Nafta region. Much of this enormous buildup is occurring through the largesse of government subsidies and in countries where domestic steel capacity already exceeds domestic consumption. If history is not to repeat itself, efficient steel producers in the U.S. and North America must continue to have access to strong and strictly enforced trade laws.”