Steel Imports Slow in April

Section 201 rules may have helped impede the flow of imported steel into the U.S.

Published May 31, 2002

April numbers seem to indicate that the flow of imported steel into the U.S. may have finally slowed down a bit, but year-to-date steel imports are still ahead of 2001. The recent slowing could be a sign that Section 201 tariffs introduced by the Bush Administration are having their intended effect.

According to the American Iron and Steel Institute (AISI), Washington, preliminary Census Bureau data indicate that the U.S. imported 1.8 million net tons of steel in April, down 13.7 percent from the March figure. That total includes nearly 1.5 million net tons of finished steel, which is down 8.6 percent from March.

Year-to-date, total steel imports of 10 million net tons remain nearly seven percent higher than last year’s figure, although finished steel imports are down two percent.

Imports of certain grades and categories remain strong, however, including:

·        Semi-finished steel, up 41 percent

·        plates - cut length, up 33 percent

·        hot dip galvanized sheet & strip, up 34 percent

·        sheet & strip - all other metallic coated, up 28 percent

·        wire rod, up 20 percent

·        bars - light shapes, up 18 percent

·        tin plate, up 16 percent.

Andrew G. Sharkey III, president and CEO of the AISI, is concerned that too many exemptions are being grated to the Section 201 rules just as they are starting to help the domestic steel industry. “Unfortunately, there is an ongoing campaign to try to undermine the effectiveness of the President's 201 remedy. It is essential that the Administration defend the steel 201 remedies—in the product exclusion process (against unwarranted exclusion requests), at the U.S. border (against attempts to evade the remedy) and in the WTO (against unjustified foreign government legal claims),” says Sharkey.

Sharkey also urged the U.S. government to stand behind its Section 201 tariffs in the face of trade-related retaliation from other nations. “It is ironic that—while foreign governments are threatening immediate retaliation because the U.S. has taken necessary action on steel in the U.S. national interest—many steel markets abroad have become ever more tightly protected against imports since March. Against this background, it is important to recall that the steel crisis was caused by unfair foreign practices and rigged markets abroad. The President’s action is intended to restore market forces and save our steel industry; and, if we can maintain the effectiveness of this 201 remedy, America’s steel industry has a chance to adjust, consolidate and thrive. And the steel industries outside of the NAFTA region have an incentive to address their structural imbalances.”
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