FOR IMMEDIATE RELEASE                                                                         

David Phelps, President, AIIS

February 24, 2010                                                                                               

Tel: 703-245-8075

Imports Increase in January

Semis Lead Increase

McLean, VA, February 24, 2010 –  Imports increased by 15.9 percent in January compared to December but were off by 31 percent from January 2009.  “Imports increased in January in response to the slowly improving market conditions,” reported David Phelps, president, AIIS. 

“As steel market demand has improved in some sectors, and with significant raw steel capacity still offline, domestic mills increased their purchase of imported semifinished steel for arrival in January.  In addition, OCTG imports increased in January in response to the improving drill rig count.  We look forward with some cautious optimism that market conditions will continue to improve for both domestic mills and importers,” concluded Phelps.  

Total Steel imports in January 2010 were 1.6 million tons compared to 1.4 million tons in December 2009, a 15.9 % increase, and a 31 % decrease compared to January 2009. The data show that imported semifinished products increased by 77.8% in January 2010 as compared to January 2009, based on preliminary reporting.

The American Institute for International Steel is the only steel related association which supports free trade. The Institute accomplishes our mission through Advocacy, Networking, Communications and Education.

FOR IMMEDIATE RELEASE                                                                         

David Phelps, President, AIIS

January 26, 2010                                                                                                   

Tel: 703-245-8075

Imports Inch up in December

Improvement in NAFTA Market the Trend?

McLean, VA, January 26, 2010  –  Imports inched up 1.3 percent in December from November based on preliminary government reporting.  “With the December preliminary data, imports for 2009 registered their worst year since 1991, during another recessionary period,” said David Phelps, president, AIIS. 

“Imports declined almost 50 percent in 2009, while domestic shipments (through November) were down 38 percent, reflecting weak demand in almost every steel market segment and substantial reductions in inventory throughout the supply chain.  Early in 2010, however, there are some signs that demand is improving.  But whether the improvement is merely a restocking of inventories or reflects a systemic improvement in demand is unknown at this time.  The one positive element in the import data for December is the increase in imports from NAFTA countries, which react more quickly to demand conditions in the US market than offshore suppliers,” concluded Phelps.

Total Steel imports in December 2009 were 1.4 million tons compared to 1.3 million tons in November 2009, a 1.3 % increase, and a 32.5 % decrease compared to December 2008. According to year-to-date figures, imports decreased 49.3 % compared to 2008 or from 32 million tons in 2008 to 16.2 million tons in 2009. The data show that imported semifinished products decreased by 29.8% in November 2009 as compared to November 2008. For the year-to-date period, semifinished imports decreased from 6.7 million tons in 2008 to 2 million tons in 2009, a 69.4% decrease, based on preliminary reporting.

The American Institute for International Steel is the only steel related association which supports free trade. The Institute accomplishes our mission through Advocacy, Networking, Communications and Education.

FOR IMMEDIATE RELEASE                                                                         

David Phelps, President, AIIS

January 19, 2010                                                                                                      

Tel: 703-245-8075

 Exports Decline in November

Slowdown in NAFTA Exports Leads Decline

McLean, VA, January 19, 2010 – Exports of steel mill products in November declined over October by nearly 5%.  “The overall decline reflects continuing weakness in NAFTA markets, which declined by 10% or over 75,000 tons month on month, greater than the total decline in exports for the month,” said David Phelps, president, AIIS. 

Exports to non-NAFTA Western Hemisphere countries continued to show promise, increasing from October by 23.8%, with several markets showing sustained strength, such as the Dominican Republic, which has seen exports from the US increase by over 130% compared to 2008, which was a robust year for exports overall.  These data continue to suggest that the positive economic conditions outside of the NAFTA region will be important to the overall recovery of the domestic steel sector,” concluded Phelps. 

Total Steel exports in November 2009 were 935 thousand tons compared to 983 thousand tons in October 2009, a 4.9% decrease, and a 1.5% increase compared to November 2008. According to year-to-date figures, exports decreased 34.5% compared to 2008 or from 12.8 million tons in 2008 to 8.4 million tons in 2009.

The American Institute for International Steel is the only steel related association which supports free trade. The Institute accomplishes our mission through Advocacy, Networking, Communications and Education.

FOR IMMEDIATE RELEASE                                                                         

David Phelps, President, AIIS

December 14, 2009                                                                                                  

Tel: 703-245-8075

Imports Slide in November

Reflect Weak Market Conditions in Late Summer

McLean, VA, December 22, 2009 – Imports declined in November compared to October by 18.8%.  “Import arrivals in November declined on the weakness of the market in late summer when non-NAFTA imports were ordered,” said David Phelps, president AIIS. 

“NAFTA imports declined in November compared to October on the weakness of the market in September and October as well.  With market conditions improving due to some strengthening in demand and also very low inventories, there is some hope that order-taking for both NAFTA and non-NAFTA imports will revive in the months to come,” concluded Phelps

Total Steel imports in November 2009 were 1.3 million tons compared to 1.6 million tons in October 2009, a 18.8% decrease, and a 45.2 % decrease compared to November 2008. According to year-to-date figures, imports decreased 50.6 % compared to 2008 or from 29.8 million tons in 2008 to 14.7 million tons in 2009. The data show that imported semifinished products increased by 97.1% in November 2009 as compared to November 2008. For the year-to-date period, semifinished imports decreased from 5.7 million tons in 2008 to 1.8 million tons in 2009, a 69.5% decrease, based on preliminary reporting.

The American Institute for International Steel is the only steel related association which supports free trade. The Institute accomplishes our mission through Advocacy, Networking, Communications and Education.

News from AIIS

FOR IMMEDIATE RELEASE                                                                         

David Phelps, President, AIIS

December 14, 2009                                                                                                  

Tel: 703-245-8075

phelps@aiis.org

Exports Remain Stable in October at September Level

Over 100% Increase in Exports to China over September

McLean, VA, December 14, 2009 – Exports decreased marginally by 0.7% in October compared to September, with total exports to Asia registering the largest decrease, 34.4% for the month.  “Exports of semifinished products to China drove the increase 107% increase overall in exports to China for the month.  These slabs exports augmented hot capacity of the Chinese mills and reflect strong economic growth in China,” said David Phelps, president, AIIS. 

“Additional good news in the data for October relates to exports to the Western Hemisphere; with exports to the NAFTA region continuing their improvement, up 9% for the month and non-NAFTA Western Hemisphere exports up 7.8%.  These data suggest that some countries and regions have shed the recession and have returned to growth,” concluded Phelps.  

Total Steel exports in October 2009 were 983 thousand tons compared to 990 thousand tons in September 2009, a 0.7% decrease, and a 37.3% decrease compared to September 2009. According to year-to-date figures, exports decreased 37.3% compared to 2008 or from 11.8 million tons in 2008 to 7.5 million tons in 2009.

The American Institute for International Steel is the only steel related association which supports free trade. The Institute accomplishes our mission through Advocacy, Networking, Communications and Education.

News from AIIS

FOR IMMEDIATE RELEASE              

October 21, 2009                                                                                            

Dave Phelps, AIIS President

phelps@aiis.org

Tel: 703-245-8075

Steel Exports Increase in August

13% Increase Makes US Net Exporter for Month

McLean, VA, October 21, 2009 - Exports increased in August by 13.1% over July.  “The improvement in exports in August is a positive sign that some international markets are improving, especially in the developing world,” said David Phelps, president, AIIS. 

“The data for August and the year-to-date period show that some developing countries, such as in Africa, the Dominican Republic, India, Brazil, and Russia are beginning to show strong signs of life in what for most developed countries has been a difficult year.  Both India and China, which did not register negative GDP growth, exports of high valued alloy and stainless products dominate the tonnages and are growing at healthy rates and beginning to return to 2008 record setting levels.  With imports (less semifinished imports and hot rolled for conversion at major rolling mills) arriving at a lower rate than export tonnages, and with the weak dollar, it is clear that the US steel industry is more and more internationally focused and steel trading companies have played an important role in that transformation over the last few years,” concluded Phelps. 

Total Steel exports in August 2009 were 800 thousand tons compared to 707 thousand tons in July 2009, a 13.1% increase, and a 40% decrease compared to August 2008. According to year-to-date figures, exports decreased 40.5 % compared to 2008 or from 9.1 million tons in 2008 to 5.5 million tons in 2009.

The American Institute for International Steel is the only steel related association which supports free trade. The Institute accomplishes our mission through Advocacy, Networking, Communications and Education.

McLEAN, Va., August 25, 2009 – Imports increased in July over June by 14.2% based on preliminary reporting.  “The increase in imports reflects the tentative improvement in the steel market this summer,” said David Phelps, president, AIIS. 

“ With steel producers from Canada and Mexico reacting as quickly to improved market conditions as domestic producers, their exports to the US represented over 50% of the increase in tonnage in July.  With some domestic steel companies plans to restart their furnaces delayed, imports of semifinished products were critical to their ability to service the improved market and therefore semis posted the largest product increase in July compared to June.  These data show that the US steel market is finally beginning to emerge from the recession.  Of course the big question, still unanswered, is whether the improvement in the US market is merely a re-stocking of inventory or reflects real improvement in demand and can be sustained,” concluded Phelps. 

Total Steel imports in July 2009 were 984 thousand tons compared to 862 thousand tons in June 2009, a 14.2% increase, and a 66.2% decrease compared to July 2008. According to year-to-date figures, imports decreased 49% compared to 2008 or from 18.9 million tons in 2008 to 9.6 million tons in 2009. The data show that imported semifinished products decreased by 85% in July 2009 as compared to July 2008. For the year-to-date period, semifinished imports decreased from 4 million tons in 2008 to 667 thousand tons in 2009, an 83.1% decrease, based on preliminary reporting.
 

McLEAN, Va., August 20, 2009 – On August 18, the WTO’s Appellate Body upheld a compliance panel’s ruling that the US failed to implement an earlier WTO ruling against the practice of zeroing.  [Steel products were involved in the dispute.]  The latest finding on zeroing will allow the Japanese Government to proceed with its WTO request to impose $248.5 million in retaliation against US exports to Japan.  The EU, India, Mexico, China and others joined Japan in this case.  The EU and Mexico have already begun the process of obtaining approval from the WTO to impose retaliatory tariffs against US exports for similar zeroing rulings.  Zeroing is a technical administrative anti-dumping issue that inflates anti-dumping margins by ignoring sales above normal value in the calculation of anti-dumping margins. 

“This is the 15^th ruling that the WTO has made against the US and 17 in total against the practice of zeroing, which unfairly inflates anti-dumping margins.  Over two administrations, the US has steadfastly first fought against the rulings, ignored the findings and then refused to implement the rulings.  There is no justification for further delay in complying with the WTO ruling, all the issues have been adjudicated and the US position is clearly seen by our trading partners to be a violation of our international obligations” said Phelps, president, AIIS. 

“By inflating anti-dumping margins zeroing adds costs to US manufacturing companies trying to compete in the global marketplace and endangers US jobs.  [Steel consuming industries, including construction, equipment, autos, auto parts, etc. employ 60 jobs for every steel-producing job.]  Now, with the potential of retaliation against hundreds of millions of dollars of US exports, other American companies will find their business and jobs at risk if the US Government does not comply with the findings of the WTO.  It is time to end the discussion about zeroing and eliminate this pernicious practice.  The Department of Commerce has the authority to make the change itself and should do so – legislation is not required,” concluded Phelps.

The American Institute for International Steel is the only steel related association which supports free trade. The Institute accomplishes our mission through Advocacy, Networking, Communications and Education.

US exports of steel mill products increased by nearly 2 percent in May over April, but were down 46 percent compared to May 2008 when exports were at record levels.  “Exports in May show some reason for optimism for the international steel market, as export shipments to non-NAFTA Western-Hemisphere  countries increased by over 15 percent month on month, while improved shipments to China, India and Vietnam helped contribute to an increase of over 24 percent for all of Asia,” David Phelps, president, AIIS.  Exports to Africa also continued to be strong, increasing again in May compared to April by 147 percent and also 45 percent higher than the 2008 total.

“Many economists and steel analysts have predicted that the developing world, especially China and India, could drive the world economy out of the current recession and these data show with the increases to the developing world that, for steel, maybe that trend is emerging. With US domestic steel shipments still running behind 2008 by over 53 percent and the US market registering more than a 50 percent decline in apparent supply, these increases are a welcome bit of sunshine for the domestic mills and international trading companies.  We hope the trend continues” concluded Phelps. 

Total Steel exports in May 2009 were 627 thousand tons compared to 617 thousand tons in April 2009, a 1.7 % increase, and a 46% decrease compared to May 2008. According to year-to-date figures, exports decreased 38.7% compared to 2008 or from 5.3 million tons in 2008 to 3.2 million tons in 2009.

McLEAN, Va., June 25, 2009 – Imports declined again in May from April, by 17.1%, to 1.019 million tons and were 59.2% below May 2008 imports.  “This is the lowest level of imports since April 1976 and reflects the continued low level of demand for steel in the US during the early part of 2009,” said David Phelps, president, AIIS. 

“Imports at this level show that steel distributors and consumers were continuing to shed inventory early this year, replacing steel needed with small mill purchases and trades between other service centers and not risking larger import buys.  The general view of the market at this point in mid-2009 is that the de-stocking process has mostly run its course and we are hopeful that demand will begin to pick up.  Indications are from the AIIS monthly importers’ survey that some long products are starting to see some improvement, although from very low levels,” concluded Phelps. 

Total Steel imports in May 2009 were 1.019 million tons compared to 1.23 million tons in April 2009, a 17.1% decrease, and a 59.2% decrease compared to May 2008. According to year-to-date figures, imports decreased 41.3% compared to 2008 or from 13.2 million tons in 2008 to 7.75 million tons in 2009. The data show that imported semifinished products decreased by 96.0% in May 2009 as compared to May 2008. For the year-to-date period, semifinished imports decreased from 2.68 million tons in 2008 to 515 thousand tons in 2009, an 80.8% decrease, based on preliminary reporting.

Exports declined 12 percent in April compared to March and were down 42.7 percent compared to April of 2008.  “The international steel market continued to slump in April, affecting exports to many international markets.  Exports to non-NAFTA countries in the Western Hemisphere led the US decline, falling 39 percent due primarily to reduced shipments to Brazil.  Whether these one month data are the beginning of a trend is too soon to tell though.  For the year, exports to this region are holding up much better than other markets, with the exception of Africa,” said David Phelps, president, AIIS.

AIIS trading company members, along with those domestic mills who export directly, ship high quality steel products around the world.  “Compared to domestic shipment percentages, US exports of alloy steels are 17.7 percent of the total exports for the year, while alloy steels represent only 4.9 percent of domestic shipments.  Likewise, exports of US-made stainless steels are 5.3 percent of the total compared to 2.1 percent of domestic shipments.  These data point to international steel consumers’ positive reception of the high quality steel products made in the US,” concluded Phelps. 

Total Steel exports in April 2009 were 617 thousand tons compared to 702 thousand tons in March 2009, a 12.0% decrease, and a 42.7% decrease compared to April 2008. According to year-to-date figures, exports decreased 36.6% compared to 2008 or from 4.10 million tons in 2008 to 2.60 million tons in 2009.

McLEAN, Va., May 27, 2009 – Imports in April declined another 21% based on preliminary data released today by the Department of Commerce’s Census Bureau.  “A large decline in imports of OCTG lead the decline in import arrivals.  OCTG imports in April were ordered long before the filing of trade cases against OCTG and reflect market conditions late in 2008 and early 2009 after the oil and gas drilling market had collapsed,” said David Phelps, president, AIIS.

“The April data reflect one of the lowest import levels in memory, and the AIIS monthly importer survey continues to show weak demand and so we do not envision a significant improvement in imports in the near term,” concluded Phelps.

Total Steel imports in April 2009 were 1.21 million tons compared to 1.54 million tons in March 2009, a 21.1% decrease, and a 59.2% decrease compared to April 2008. According to year-to-date figures, imports decreased 37.3% compared to 2008 or from 10.70 million tons in 2008 to 6.71 million tons in 2009. The data show that imported semifinished products decreased by 85.7% in April 2009 as compared to April 2008. For the year-to-date period, semifinished imports decreased from 2.23 million tons in 2008 to 497 thousand tons in 2009, a 77.7% decrease, based on preliminary reporting.

McLEAN, Va., April 8, 2009 – Today the domestic industry filed AD and CVD cases against imports of Oil Country Tubular Goods (OCTG) from China.    

“The domestic industry filing today is regrettable.  It was market conditions that stimulated the large increase in imports of OCTG in 2008, not unfair trade.  In late June, the largest US producer, in response to robust market conditions and shortages of OCTG according to many in the drilling industry, announced an increase in prices for all its pipe and tube products of $800 per ton (including surcharges).  This price increase covered OCTG.  Not surprisingly, with market conditions prior to the price increase difficult for importers due to the weak dollar, high freight rates and high prices for steel in many international markets, this unprecedented increase stimulated import ordering on a large scale.  We were told at the time by many in the industry that they believed that the official announcement on the price increase was a typo and so called the company to verify.  Stunned, they were told that it was not a typo, it was in fact an $800 per ton increase,” said David Phelps, president, AIIS. 

That increase was followed up in September 2008 by the same company with another $200 per ton increase, obviously reflecting what was then still considered strong market conditions. 

When the market for OCTG collapsed late in 2008, the imports were already on their way to the US market.  “The steel import pipeline for imports outside of NAFTA is at least 3 and from China, up to 6 months.  When much of this OCTG, which was ordered during the summer and fall when the market was strong, arrived late in the year, market demand was moribund and excess supply saturated the marketplace,” said Phelps. 

During the robust period for market demand, steel importers ordered OCTG in response to actual US consumers’ orders -- very little if any steel was purchased from foreign mills that was not pre-sold in the US market.  There is a significant inventory overhang at this point due to a collapse in demand between the time the products were ordered and arrived into the US market, credit liquidity problems and unprecedented downward market price corrections.    

“We are disappointed that the domestic industry has again tried to blame the realities of the marketplace on imports.  Further, should this case be successful and the price of energy rise – as it surely will – the domestic drilling industry will find itself with yet another shortage of OCTG, this time due to an ill-advised government decision to limit supply of a critical product in the critical energy drilling industry,” concluded Phelps.