PMA President expresses concern over declining steel imports.
Press Release Summary:
According to preliminary data issued by the U.S. Department of Commerce, total steel imports into the U.S. decreased 9% in April, while total steel imports in 2007 are 24% lower than they were at this time in 2006. Hot-rolled steel imports decreased 19% and cold-rolled imports dropped 31%. Drop in imports follows comments by Risaburo Nezu, chairman of the OECD steel committee, that global steel consumption is expected to grow in 2007 and 2008.
Original Press Release:
Steel Imports Resume Decline In April
WASHINGTON, D.C. -May 30, 2007-Precision Metalforming Association (PMA) President William E. Gaskin expressed concern over April's drop in steel imports, which continues a trend of declining steel imports into the United States evident since August 2006.
According to preliminary data issued today by the U.S. Department of Commerce, total steel imports decreased nine percent in April to 2.5 million metric tons, down from March's level of 2.75 million metric tons. Imports of hot-rolled steel, an essential product for many metalforming companies, decreased 19 percent in April to 185,994 metric tons. Cold-rolled imports dropped even more sharply in April, falling 31 percent from March 2007 levels to 124,634 metric tons. Total steel imports in 2007 are 24 percent lower than they were at this time in 2006.
"This month's decrease in steel imports brings year-to-date imports of hot- and cold-rolled steel to a level 40 percent below the first four months of 2006. When combined with the seven percent year-to-date drop in overall steel production by U.S. mills, we have a trend adversely impacting U.S. businesses that rely on flat-rolled metal as a primary input for production of finished products or assemblies," said Gaskin. "Domestic supplies remain tight and demand for steel around the world continues to increase. U.S. manufacturers face uncertainty over whether they can obtain steady supplies of raw materials at a competitive price in the future."
"China's recent decision to impose a tax on exports of raw steel also raises a red flag for U.S. steel consumers," continued Gaskin. "PMA certainly does not support imports of subsidized material into the United States, but the five percent export tax on flat-rolled products is likely to raise prices on imports from other countries into the U.S. market. Also, because less Chinese steel will be exported, the result will be to drive down steel prices in China. This will bolster China's exports of finished goods and assemblies that use steel as a primary input as Chinese manufacturers take advantage of lower steel prices. These products will be in direct competition with products made by PMA members."
The drop in imports into the United States comes on the heels of comments by Risaburo Nezu, chairman of the steel committee of the Organization of Economic Cooperation and Development (OECD), who said that global steel consumption is expected to keep growing in 2007 and 2008 thanks to "booming" demand from China, India and the Middle East.
The Precision Metalforming Association (PMA) is the full-service trade association representing the $91-billion metalforming industry of North America - the industry that creates precision metal products using stamping, fabricating and other value-added processes. Its nearly 1,200 member companies include metal stampers, hot-rolled fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry. Members are located in 30 countries, with the majority found in North America (in 41 states of the U.S.) as well as Canada and Mexico.
Additional information on PMA can be found at www.metalformingadvocate.org
