Based on preliminary Census Bureau data, the American Iron and Steel Institute (AISI) reported October imports of steel into the United States declined 11.7% compared to September, with finished steel imports 9.2%% lower than in September. Year-to-date imports are 50.2% higher than 2003, with finished steel imports 49.7% higher than in 2003. The gain of nearly 50% in finished steel imports is more than three times the 14.4% increase in steel consumption. As a result, the finished steel market share in this period has risen from 15.9 to 20.5%.

There were significant increases in October compared to September in several products, including:

• Tin-free steel, +100%
• Bars—light shapes, +41%
• Cold-rolled sheets, +21%

For the year-to-date compared to last year, imports are up substantially in almost all major product lines, including hot-rolled sheet (+70%). Reflecting the effect of high import levels and some market softening, hot- and cold-rolled sheet spot prices in October declined 5.6 and 2.3%, respectively, from September levels, as reported in Purchasing Magazine. These were the first such declines since May 2003.

“The October data remind us that the U.S. and world steel markets are subject to change,” commented David S. Sutherland, President and CEO of Ipsco Inc. and Chairman of AISI. “The good news is that globally competitive steel producers in the U.S. and Nafta region are today in a strong position to support North American customers in construction and manufacturing. The task for government is to ensure that unfair trade does not undermine this significant progress. That will require market-based exchange rates, continued steel import monitoring, strict trade law enforcement and ongoing efforts to address world steel structural imbalances,” he said.