July 26, 2006 — The United States imported a total of 3,372,000 net tons of steel in June 2006 according to the latest report from the American Iron and Steel Institute (AISI). The total reflects a 14.4% decrease compared to the previous month, May 2006.

The report, which is based on preliminary Census Bureau data, indicates that the total includes 2,888,000 net tons of finished steel, a 9.2% decrease compared to the previous month.

First half, year-to-date (YTD), total imports remain up 33% compared to YTD imports for the same period in 2005, while YTD finished steel imports are up 32% compared to YTD 2005.

Looking at a 3-month rolling average (monthly average for most recent 3-month period compared to the previous 3-month period), finished steel imports overall are up 10 percent, with notable increases in

• Plates in coil (+78%)
• Tin plate (+39%)
• Mechanical tubing (+31%)
• Line pipe (+30%)
• Cold rolled sheets (+22%)
• Cold finished bars (+22%)
• Cut-length plates (+20%)
• All other metallic coated sheets & strip (+16%)
• Hot rolled sheets (+15%)
• Hot rolled bars (+15%)

The rising trend remains pronounced for countries with a history of unfair trading, especially in Asia — including India (+56%), Taiwan (+32%) and China (+12%), where imports (on an annualized basis) are on a pace to exceed 4 million tons. On an annualized basis (based on YTD 2006 imports), total and finished steel imports (at 44.6 and 35.2 million net tons, respectively) would set all-time records.

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

• Tin plate (+53%)
• Wire rods (+50%)
• Cold rolled sheets (+16%)
• Sheets & strip all other metallic coated (+16%)
• Cold finished bars (+14%).

Finished steel products with sizable YTD increases compared to 2005 include

• Reinforcing bars (+95%)
• Heavy structural shapes (+79%)
• Cold rolled sheets (+72%)
• Hot rolled sheets (+56%)
• Galvanized hot dipped sheets & strip (+40%)
• Cut-length plates (+41%)
• Plates in coil (+37%)
• Bars—light shapes (+36%)
• Line pipe (+30%)
• Oil country goods (+25%)
• Standard pipe (+24%)

“The first half import totals come against the backdrop of continued state support of steel capacity offshore, including the massive expansion of steel capacity that we see in China and the rest of Asia,” said AISI Chairman Louis L. Schorsch, who is President and CEO of Mittal Steel USA. “A revitalized, globally competitive American steel industry urges continued close vigilance of imports and strong trade law enforcement to ensure market-based outcomes.”

“The recent issuance of a major new study entitled ‘The China Syndrome: How Subsidies and Government Intervention Created the World’s Largest Steel Industry’ only reinforces the need to preserve, defend and enhance U.S. trade laws,” added Andrew G. Sharkey III, AISI President and CEO.