March 6, 2006 — The United States imported a total of 3,145,000 net tons of steel in January, according to the latest report by the American Iron and Steel Institute (AISI). The total reflects a 7.7% increase compared to the previous month (December 2005), and a 9.2% increase compared to January 2005.

AISI’s report, which is based on preliminary Census Bureau data, also shows that total imports included 2,349,000 net tons of finished steel. Finished steel imports reflect a 7.1% increase compared to the previous month, and an 8.6% increase compared to January 2005.

Three-month rolling averages (the most recent three month period compared to the previous three month period) reflect that finished steel imports overall are up 11.5% and that, from certain countries, the upward trend is especially pronounced — e.g., Turkey (+141%), Taiwan (+94%), India (+88%), China (+38%) and South Korea (+31%). On an annualized basis (based on January 2006), total steel imports would exceed 37.7 million net tons, which would be the third-highest year in history.

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

• Wire rods, +107%
• All other metallic coated sheet & strip, +31%
• Bars–light shapes, +23%
• Structural pipe & tubing, +22%
• Oil country tubular goods, +15%

U.S. spot prices in January 2006 for hot rolled sheet declined slightly from the previous month, from $550 per ton to $545 per ton, according to data publicly reported by Purchasing Magazine. U.S. spot prices for cold-rolled sheet also declined over the same period, from $640 per ton to $627 per ton. Year-over-year price declines for these products (January 2006 vs. January 2005) were 14.8% and 14.1%, respectively.

"The increase in imports in January comes on the heels of already high import levels in 2005," said AISI Chairman John P. Surma, who is Chairman and CEO of United States Steel Corp. "Given the growing challenges faced by U.S. manufacturers from increased imports and foreign unfair trade practices, we plan to play an active role in the fight to reduce the trade deficit, get serious about dealing with market-distorting practices in China and elsewhere, and, most importantly, ensure that U.S. trade laws are not weakened in ongoing international negotiations."