April 28, 2006 — The United States imported a total of 3,888,000 net tons of steel in March 2006, according to the latest report by the American Iron and Steel Institute (AISI). The total includes 2,916,000 net tons of finished steel — 29% higher than March 2005. For both finished and total steel imports, March 2006 was the highest monthly import tonnage since November 1998.

Year-to-date (YTD) imports are 32% higher than YTD 2005; YTD finished steel imports are 27% higher than YTD 2005.

Looking at a three-month rolling average (the most recent three-month period compared to the previous three-month period), the trend shows that finished steel imports overall are up 30%, with notable increases in:

• Wire rods (+91%)
• Structural shapes (+79%)
• Cold rolled sheets(+61%)
• Reinforcing bars (+54%)
• Hot dipped galvanized sheets and strip (+36%)
• Hot rolled sheets (+31%)

The trend toward heightened import levels is especially pronounced for certain countries with a history of unfair trading, e.g., Taiwan (+139%), Turkey (+116%), China (+86%), South Korea (+45%), Brazil (+43%) and Japan (+38%). Projecting the current level of imports on an annualized basis (based on YTD 2006 imports), anticipated total steel imports could reach 44.2 million net tons, which would set an all-time record.

Key products with large increases in March compared to the previous month include line pipe (+63%), hot rolled sheets (+40%), hot-dipped galvanized sheets and strip (+33%) and cold rolled sheets (+14%). Products with notable YTD increases compared to 2005 include

• Reinforcing bars (+125%)
• Heavy structural shapes (+95%)
• Galvanized electrolytic sheets & strip (+53%)
• Semi-finished steel, consumed in significant tonnages by converters and processors (+50%)
• Bars – light shapes (+48%)
• Cut-length plates (+36%)
• Galvanized hot dip sheets & strip (+36%)
• Cold rolled sheets (+34%)
• Wire rods (+31%)
• Hot rolled sheets (+28%)
• Line pipe (+45%)
• Oil country goods(+41%)
• Standard pipe (33%)

“The steel import data for March and the first quarter underscore the need for continued vigilance regarding steel trade flows in the U.S. market," said AISI Chairman Louis L. Schorsch, President and CEO of Mittal Steel USA. "Such import surges are ultimately damaging to both producers and to our customers, who rely on stable sources of domestic supply. Most disturbing is the substantial percentage increase in imports from countries such as China, where government subsidies are driving uneconomic capacity increases. A transformed and globally competitive American steel industry can compete on a level playing field against all comers, yet unfair and disruptive trade can damage the good prospects and ongoing, pro-customer modernization plans of even the healthiest industry. This is why it remains a primary responsibility of the U.S. government to defend, enhance and enforce our vital trade remedy laws, both in our markets as well as in international trade negotiations."

“The steel industry in the U.S. and North America is today world class, but no industry can compete against governments,” Andrew G. Sharkey III, President and CEO of AISI added. “Trade in steel, raw materials and steel-containing products continues to be distorted by government subsidies, trade barriers and currency manipulation. “Given the ongoing rush of state-supported steel capacity expansion projects offshore, a revitalized American steel industry will intensify its public policy activity in support of market-based outcomes and real free trade.”