Total Tonnage Finished Tonnage June Steel Imports 3,248,000 2,543,000 Increase Since May +9% +14% YTD Increase +30% +27%

Based on preliminary Census Bureau data, the American Iron and Steel Institute (AISI) reported that June imports of steel into the United States were 9% higher than in May, with finished steel imports uo 14% compared to May. This was the highest month for total imports since February 2002, and the highest month for finished steel imports since September 2002. Year-to-date (YTD) total and finished steel imports are up 16% and 14%, respectively, compared to the same period last year.

Many flat-rolled and coated products, long products and tubular products showed large increases in June compared to May, including:

• Plates in coil, +36%.
• Plates, cut length, +35%.
• Galvanized (hot-dipped) sheet & strip, +26%.
• Wire rods, +22%.
• Cold finished bars, +16%.
• Hot rolled sheet, +15%.
• Oil country goods, +15%.

Products with substantial increases YTD versus 2003 include:

• Concrete reinforcing bar & rods, +102%.
• Wire rods, +74%.
• Semi-finished steel, imported in significant quantity by converters, +45%.
• Oil country goods, +44%.
• Structural shapes, 3-inch and over, +33%.
• Plates in coils, +28% .
• Bars - light shapes, +27%.
• Standard pipe, +23%.
• Cut length plates, +21%.
• Structural pipe & tubing, +21%.
• Hot rolled sheets, +20%.
• Tin free steel, +19%.
• Cold rolled sheets, +16%.

The accelerating increase in steel imports is illustrated by the fact that Q2 imports were 32 % higher than Q1 imports and 62% higher than imports in the fourth quarter of last year.

David S. Sutherland, President and CEO of Ipsco Inc. and Chairman of AISI, stated that, “Steel imports surged into the U.S. market in June at a 39-million ton annual rate. In light of the accelerating surge of imported steel, it is now critical that the Administration move quickly to enhance the detail and accuracy of the government’s steel import monitoring system.” With a new EU agreement placing tight quotas on Russian steel and with U.S. imports rising quickly from Russia, Turkey, China, India and other countries, Sutherland once again urged the Administration to “meet your stated commitment to enhance and extend steel import monitoring, as was promised last December.”

Andrew G. Sharkey III, AISI President and CEO, added that, “While the U.S. and other governments agreed in June to take a pause in the formal OECD steel negotiation, there has been no pause in foreign government subsidies, protectionism and other trade-distorting practices affecting steel trade. AISI supports House and Senate bills to codify an enhanced and extended steel import licensing system, because vigorous import monitoring and strict adherence to rules-based trade are essential components of a pro-manufacturing agenda.”