Aug. 30, 2006 — The United States imported a total of 4,197,000 net tons of steel in July 2006, according to the latest report from the American Iron and Steel Institute (AISI) — the second-highest monthly total in U.S. history, surpassed only by the 4,418,000 net tons recorded in August 1998. The report, which is based on preliminary Census Bureau data, shows that the June total included 3,368,000 net tons of finished steel.

Total imports were 13.6% higher than in the previous month, June 2006; finished imports were 8.5% higher than the previous month. Year-to-date (YTD) total imports are 38% higher than YTD2005, and YTD finished steel imports are 39% higher than finished steel imports for YTD2005. On an annualized basis (based on YTD 2006 imports), total and finished steel imports (at 45.9 and 36.3 million net tons, respectively) would set all-time records — 49 and 52% higher, respectively, than last year.

Looking at a 3-month rolling average (monthly average for most recent 3-month period compared to the previous 3-month period), finished steel imports overall are up 8 percent, with notable increases in:

• Plates in coil, +72%
• Sheets & strip (all other metallic coated), +25%
• Hot rolled sheets, +22%
• Sheets & strip, galvanized hot dipped, +13%
• Cut-length plates, +11%
• Line pipe, +33%
• Mechanical tubing, +27%
• Oil country goods, +14%

This rising trend remains pronounced for countries with a history of unfair trading, especially in Asia -- including India (+49%), China (+27%), South Korea (+22%) and Japan (+21 percent). Imports from P.R. China, a non-market economy, are on a pace to exceed 4.5 million tons this year. In July, China was the single largest source of steel imports to the United States.

Key products with large increases in July compared to the month before include

• Line pipe, +55%
• Plates in coil, +51%
• Bars–light shapes, +42%
• Semi-finished steel, +41%
• Oil country goods, +34%
• Electrolytic galvanized sheets & strip, +84%
• All other metallic coated sheets & strip, +19%
• Hot dip galvanized sheets & strip, +11%

“Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis (SIMA) data, there is little sign that record import levels are slowing and, in specific products from China and elsewhere where there are no orders against dumped or subsidized imports, the rise is especially noteworthy,” said AISI Chairman Louis L. Schorsch, President and CEO of Mittal Steel Americas. “These record import tonnages, often from subsidized foreign producers, are a concern to America’s world class steel industry, because they are coming in the face of rising inventories at the consumer level and slowing economic growth.”

“The rise of China and America’s record steel trade deficits are symbolic of what is occurring in other sectors and other products,” added AISI President and CEO Andrew G. Sharkey III. “Whether in steel or in other manufacturing sectors, the U.S government should make it clear that it is prepared to use all available tools, including WTO rules and strengthened trade laws, to combat foreign government industrial targeting, currency manipulation, subsidies, non-market-based capacity expansions and trade-distorting practices.”