Data released by the Specialty Steel Industry of North America (SSINA) demonstrate continued erosion of the U.S. market for total specialty steel and total stainless steel.

Total year-to-date specialty steel imports (through August 2004) captured 28% U.S. market share, a two percentage point increase over the comparable 2003 period. Domestic consumption of total specialty steel increased 9% to 1,894,183 tons. Even with the growth in demand, U.S. specialty steel producers lost market share due to a 16% increase in imports to 523,045 tons.

For total stainless steel (including sheet/strip, plate, bar, rod and wire), eight-month import penetration increased three percentage points to 26% year on year. Although U.S. demand for total stainless steel increased 12% to 1,590,944 tons, a 24% increase in imports to 410,890 tons translated into lost market share to foreign product.

Imports of stainless steel sheet/strip, the industry's largest product category, took a 21% bite out of the U.S. market, up two percentage points from YTD August 2003. Imports increased 25% to 253,265 tons offsetting the 13% increase in demand to 1,179,243 tons.

Year-to-date, U.S. stainless steel plate producers lost seven additional percentage points of U.S. market share to imports, from 18% to 25%. Imports increased 50% to 49,138 tons, while U.S. consumption rose only 6% to 197,328 tons. Eight month import penetration for stainless steel bar remained at 39%. Imports increased 7% to 51,920 tons; consumption rose 8% to 133,574 tons.

Stainless steel rod import penetration dropped to 49% from 56%. Consumption increased 25% to 59,601 tons, while imports increased 9% to 29,259 tons. Stainless steel wire imports increased 21% to 27,309 tons.

Alloy tool steel and electrical steel imports both declined. For alloy tool steel, imports dropped 1% to 58,788 tons. For electrical steel, imports fell 7% to 53,366 tons and demand declined 3% to 256,748 tons. YTD import penetration dropped one percentage point to 21%.

SSINA is a Washington, DC-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.