Steel Imports Break All Records in 2006

Jan. 31, 2007 — The United States imported 2,988,000 net tons of steel in the month of December, according to the latest report from the American Iron and Steel Institute. The report, which is based on preliminary Census Bureau data, shows that the December total included 2,453,000 net tons of finished steel.

The imports mounted despite widespread production level decreases across the domestic industry, where capacity utilization rates averaged only 75% over the period.

Despite year-end import reductions (the December total and finished steel imports were 13% and 12% lower, respectively, vs. November’s final data), full-year total and finished steel imports set all-time new records in 2006. At 45.3 and 35.9 million net tons, 2006 total and finished steel imports were 41% and 43% higher, respectively, than in 2005.

Key products with large increases in December compared to the month before included

• Heavy structural shapes, +72%
• Galvanized electrolytic sheet & strip, +71%
• Bars-light shapes, +30%
• Tinplate, +11%

Finished steel imports from Asia, a region where inappropriate government market interventions and market-distorting trade practices remain a chronic problem, nearly doubled in 2006 — they were up 95% vs. 2005. Significant increases in 2006 included Taiwan (up 208%), Malaysia (up 158%), China (up 133%), Thailand (up 111%), India (up 74%), South Korea (up 55%) and Japan (up 23%). In December, for the sixth month in a row, China (a non-market economy with a very serious pollution problem) was the single largest source of steel imports into the United States (470,000 net tons). For the year, finished steel imports from China totaled nearly 5.4 million net tons. There were also notable increases in 2006 vs. 2005 from countries of “Other Europe,” including Russia (up 114%) and Turkey (up 77%).

"Due to continued evidence of surging steel imports, AISI urges the U.S. Congress and the Administration to focus on strategies that defend and enforce our trade laws," said AISI Chairman Louis L. Schorsch, who is CEO of Arcelor-Mittal Steel's Flat Products Americas. "During the past three years, the North American steel industry has achieved significant consolidation and restructured its business to more successfully manage across business cycles. We have worked hard to be a globally competitive industry and continue to seek effective U.S. trade enforcement that ensures our rules-based trade environment allows free market forces to drive the global marketplace in the steel industry."

In commenting further on the record import levels, AISI President and CEO Andrew G. Sharkey III, said that, “When we look at surging imports from China and other countries with a history of market-distorting trade practices, it clear our trade laws are in urgent need of strengthening. This is why steel joins other globally competitive U.S. industries in supporting S. 364, The Strengthening America’s Trade Laws Act of 2007, sponsored by Sen. Jay Rockefeller.”