Despite a healthy rise in demand for specialty steel and its individual product lines, imports tightened their grip on U.S. market share in the first seven months of this year.

Data released by the Specialty Steel Industry of North America (SSINA) reflect that U.S. specialty steel consumption increased 8% through July 2004 (to 1,641,864 tons) compared with the first seven months of 2003. The increase, however, did not offset a 14% year-on-year hike in imports to 449,187 tons. Consequently, domestic specialty steel producers lost 27% U.S. market share to imports, a one percentage point increase over the first seven months of 2003. (Total specialty steel comprises stainless steel, electrical steel and tool steel.)

Demand for stainless steel, the industry's largest product category, increased 11% to 1,381,436 tons year-on-year. Imports, however, jumped 19% to 353,191 tons, pushing seven-month import penetration up two percentage points to 26%.

Stainless steel sheet/strip consumption increased 12% to 1,021,377 tons year on year. Imports increased 21% to 215,871 tons. Seven-month import penetration for stainless steel sheet/strip increased one percentage point to 21%.

While domestic demand for stainless steel plate rose 8% to 174,803 tons year on year, imports increased 53% to 43,642 tons. Imports took a 25% bite out of the U.S. market, a seven percentage point increase over YTD July 2003.

Stainless steel bar consumption in the U.S. rose 5% to 115,414 tons year on year. Imports increased 1% to 44,590 tons, capturing 39% U.S. market share.

While U.S. consumption of stainless steel rod rose a significant 21% to 51,245 tons, imports still claimed almost half of the U.S. market. Stainless steel rod imports increased 6% to 25,116 tons year on year; seven-month import penetration was 49%.

Imports of stainless steel wire increased 18% to 23,972 tons. Imports of alloy tool steel decreased 5% to 50,282 tons.

Electrical steel imports decreased year on year, as did U.S. consumption. Imports declined 2% to 45,714 tons year on year. U.S. consumption dropped 4% to 220,842 tons. Import penetration rose one percentage point to 21%.

Specialty Steel Industry of North America (SSINA) is a Washington, D.C.-based trade association representing virtually all continental specialty steel producers. David A. Hartquist, an international trade attorney with the Washington, D.C., law firm Collier Shannon Scott, PLLC, serves as lead counsel to SSINA.