Steel Imports to US surge in May.
Press Release Summary:
As Chinese steel producers moved to unload inventories ahead of export tax on raw steel imposed by Chinese government, steel imports into United States jumped sharply in May. PMA president, William E. Gaskin, voiced strong concern that export tax would depress prices for raw steel in China, and in turn, encourage Chinese producers to ramp up exports of value-added steel-based products that compete directly with PMA members' products.
Original Press Release:
Steel Imports Surge In May in Advance Of China Steel Export Tax
WASHINGTON, D.C.-June 26, 2007-Steel imports into the United States jumped sharply in May as Chinese steel producers moved to unload inventories ahead of an export tax on raw steel imposed by the Chinese government that took effect on June 1. Precision Metalforming Association (PMA) President William E. Gaskin voiced strong concern that the export tax would depress prices for raw steel in China and in turn encourage Chinese producers to ramp up exports of value-added steel-based products that compete directly with PMA members' products.
According to preliminary data issued today by the U.S. Department of Commerce, total steel imports increased 13% in May to 2.9 million metric tons, up from April's level of 2.58 million metric tons. Imports of hot-rolled steel, an essential product for many metalforming companies, rose 41% in May to 264,393 metric tons. Cold-rolled imports also jumped in May, rising 37% percent from April 2007 levels to 172,697 metric tons. Despite the spike in May, however, total steel imports in 2007 are down 22% on the year compared to May 2006 totals, and imports of hot-rolled steel are down 44% for the first five months of 2007 compared to 2006.
"China's decision to impose an export tax on raw steel, while welcome for U.S. steel producers, sends a chilling message to U.S. manufacturers of steel-based products," said Gaskin. "PMA members already face brutal cost-down pressure from their customers and are constantly challenged with the need to meet 'the China price' for components and assemblies. The export tax will squeeze supplies of flat-rolled steel, especially in North America and Europe, while creating excess inventories and lowering the price of steel in China. This will create incentives for steel-using manufacturers in China to compete directly with U.S. metalforming companies and other U.S. manufacturers."
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 or by contacting George Felcyn at 202-466-6210 or george.felcyn@pbnco.com.
Contact:
George Felcyn
The PBN Company
Phone: 202-466-6210
E-mail: george.felcyn@pbnco.com
