Hot-Rolled Steel Imports continue to decline.
Press Release Summary:
According to PMA President William E. Gaskin, October's decline in hot-rolled steel imports is further confirmation of increasingly tight market conditions faced by U.S. manufacturers that use raw steel to make finished products. Despite 13% increase in steel imports in October, for the year, total steel imports are down 26%, and imports of hot-rolled steel are down 50% for first 10 months of 2007 compared to same time period last year.
Original Press Release:
October Steel Imports Up, But Continued Decline In Hot-Rolled Imports Is Unwelcome News For American Metalformers
WASHINGTON, D.C.-November 27, 2007-Precision Metalforming Association (PMA) President William E. Gaskin called October's decline in hot-rolled steel imports - the product used most frequently by metalforming companies - further confirmation of the increasingly tight market conditions faced by U.S. manufacturers who use raw steel to make finished products. Despite a 13% increase in steel imports in October, for the year, total steel imports are down 26%, and imports of hot-rolled steel are down 50% for the first 10 months of 2007 compared to the same time period last year.
According to preliminary data issued today by the U.S. Department of Commerce, total steel imports increased 13% in October to 2.45 million metric tons, up from September's level of 2.16 million metric tons. However, imports of hot-rolled steel fell 10% in October to 171,518 metric tons. Cold-rolled imports rose in October, up 19% from September 2007 levels to 117,138 metric tons.
"Coupled with historically low inventories at service centers and a decrease in production at U.S. mills, October's dip in hot-rolled import levels means that the U.S. market for raw steel continues to get tighter every day," said Gaskin.
"PMA members are struggling to retain customers when tight supplies make the cost of raw materials higher, making them less competitive against offshore manufacturers. U.S. manufacturers simply cannot compete with a finished part that overseas competitors can produce for the cost that U.S. companies pay just for the steel contained in that part. The result is the continued offshoring of parts and assemblies. For example, imports of automotive stampings from China are increasing at the rate of 51% in 2007 vs. 2006. That is why it is so important for Washington policymakers to avoid acting overzealously and placing more restrictions on steel imports than are already in place," he concluded.
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 or by contacting George Felcyn at 202-466-6210 or george.felcyn@pbnco.com.
