Anticipated Record Imports for 2006
Prompt AISI Call for Action
Jan. 4, 2006 — The American Iron and Steel Institute (AISI) reports that steel import permit applications for the month of December 2006 totaled 2,590,000 net tons.
That total, which is based on the Commerce Department’s most recent Steel Import Monitoring and Analysis (SIMA) data, represents a 26% decrease from the 3,495,000 permit tons recorded in November, and a 24% decrease from the November preliminary imports total of 3,389,000 net tons.
However, if 2006 imports are estimated for the full year (including November preliminary and December permits), total imports this year would reach 45 million tons of steel mill products, including 36 million tons of finished steel—-both all-time records.
For December, the largest volume of steel import permit applications for an individual country was again China, with 415,000 net tons. Other notable countries include Ukraine at 243,000 net tons and Taiwan at 203,000 net tons.
Finished steel import permit applications for Chinese steel were down around 20% in December compared to the preliminary imports totals for November. However, for the sixth consecutive month, it appears that China—a non-market economy country that provides subsidies and other forms of government support to its domestic steel industry—will again be the single largest foreign supplier to the U.S. market. Estimated full-year 2006 imports from China would be 5.4 million tons, up 125% from 2005. On an estimated full-year basis, 2006 will likely see a precipitous rise as compared to the prior year for imports of all major steel mill product categories.
In analyzing the SIMA data for the month of December and the data on an estimated full year basis, AISI President and CEO Andrew G. Sharkey III, said that, “AISI has serious concern over the fact that 2006 total and finished imports appear likely to set all-time records and imports from China — a country that practices mercantilist trade policies — have surged to unprecedented levels. The fact that this has occurred in the face of a record buildup of service center inventories and slowing demand only exacerbates our concern and gives further cause to the need to defend, enhance and enforce U.S. trade laws.”
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 32 member companies, including integrated and electric furnace steelmakers, and 125 associate and affiliate members who are suppliers to or customers of the steel industry.