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Based on preliminary Census Bureau data, the American Iron and Steel Institute (AISI) reported that December imports of steel into the United States were 10.7% lower than in November, with finished imports down 5.8% compared to November. For 2003 as a whole, total and finished steel imports are down 29.6 and 23.7% respectively, compared to 2002.

As reported last month, the significant decrease in imports last year reflects several factors: the Section 201, a more competitive U.S. steel industry, a decline in the value of the dollar against certain currencies and the fact steel prices here remained lower than in China and most other major markets abroad.

Steel products registering large increases in December compared to November included

• Sheets - hot rolled, up 58%
• Structural shapes 3 inches and over, up 41%
• Strip-cold rolled, up 24%
• Bars - hot rolled, up 17%

Imports that showed big gains in 2003 included

• Oil country goods, up 54%
• Tool steel, up 15%
• Stainless pipe & tubing, up 14%
• Electrical sheet & strip, up 14%
• Tin plate, up 11%

According to current independent, publicly available sources, in December, average import customs values for many finished steel products remained below their historic (1980-2000) averages. Average U.S. spot prices for hot and cold rolled sheet are increasing, according to Purchasing Magazine data. However, U.S. prices remain far below where they were a year ago, despite the significantly higher costs that U.S. producers are paying for raw materials. With steel input costs rising worldwide, hot and cold rolled spot prices continued to increase in global markets in December.

David S. Sutherland, President and CEO of IPSCO and Chairman of AISI, stated that, “The December and full-year import data are encouraging, but the U.S. steel industry faces significant domestic and international challenges in 2004. Raw material costs are increasing rapidly. World steel structural imbalances and trade-distorting practices are not going away. The global attack against U.S. trade laws continues. The China currency and trade deficit problem is harming steel’s customers. We need to work closely with our customers this year to preserve and strengthen the manufacturing base in the United States and North America as a whole.”

Andrew G. Sharkey III, AISI president and CEO, agreed, adding that, “In light of these challenges, our U.S. members will be working hard this year to: advance the pro-manufacturing agenda; defend and enhance our trade laws; preserve the Continued Dumping and Subsidy Offset Act; improve U.S. steel import monitoring, licensing and enforcement; and avoid a bad result in the OECD Steel Subsidies Agreement negotiation.”

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