Oct. 25, 2006 — The United States imported a total of 3,699,000 net tons of steel in September 2006, according to the latest report released by the American Iron and Steel Institute (AISI). The total reflects an 11.8% decrease compared to the very high total import levels in August.

The report, which is based on preliminary Census Bureau data, shows that the total includes 2,922,000 net tons of finished steel, a 9.9% decrease from the high August finished steel import total. Year-to-date (YTD) total and finished steel imports are now up 44% and 45%, respectively, compared to the same period in 2005.

On an annualized basis (based on YTD 2006 imports), total and finished steel imports—at 46.4 and 36.6 million net tons, respectively—would set all-time records. These totals would be 44% and 45% higher, respectively, than last year. Key products with large increases in September compared to the month before include:

• Reinforcing bars, +50%
• Structural pipe and tubing +47%
• Bars-light shapes, +29%
• Heavy structural shapes, +19%
• All other metallic sheets & strips, +11%

Looking at a 3-month rolling average (monthly average for most recent 3-month period vs. the previous 3-month period), finished steel imports overall are up 2% from a very high monthly average in the April-June period. Notable increases include:

• All other metallic coated sheets & strip, +33%
• Semi-finished steel, +31%
• Steel wire rods, +19%
• Line pipe, +18%

This rising trend remains pronounced for countries with a history of unfair trading, especially in Asia. Notable examples include Thailand (+86%), China (+47%) and South Korea (+18%). The 3-month rolling average for Russia is up 33% compared to the previous 3-month period, and YTD imports from Russia are up 135% vs. last year. In September, for the third month in a row, China, a non-market economy, was the single largest source of steel imports to the United States, with 519,000 net tons. Imports from China were 192% higher in September 2006 than in the same month last year and at their present pace, will exceed 5 million tons this year.

“Despite all that America’s steel industry has done to regain lost market share and invest for a strong future, the industry remains vulnerable to injury from countries that have repeatedly sent dumped and subsidized imports to the United States,” said AISI Chairman Louis L. Schorsch, CEO of Mittal Steel’s Flat Products Americas. “That is why we must have strong and strictly enforced trade laws.”

“With China now a significant net steel exporter, countries that were sending their excess capacity to that nation are increasingly seeking alternative markets — such as the United States — for their capacity,” said Andrew G. Sharkey III, AISI President and CEO. “This has contributed to the present excess inventories in the U.S. Therefore, in the aftermath of last week’s constructive U.S.-China Steel Dialogue in Beijing, it is essential that China and other nations understand that, while dialogue to improve mutual understanding is important, dialogue is no substitute for rules-based trade.”