| January
2005 Association News |
|
Repeal
or Retaliation for Byrd Amendment The
EU will impose a 15 percent duty on certain types of paper, clothing
fabrics, footwear and machinery amounting to tariffs worth about
$28 million, and Canada will impose duties on cigarettes, oysters
and live swine worth $14 million, because the U.S. Congress has
not repealed the Byrd Amendment, which the World Trade Organization
deemed illegal. Under
the CDSOA, some duties on illegal imports go directly to “affected
domestic producers” harmed by the dumping. U.S. steel industry
trade groups maintain that the WTO “overreached its authority,
by creating and attempting to enforce requirements that are nowhere
found in the WTO agreements.” Canada’s
International Trade Minister Jim Peterson has stated that, for the
last four years, “Canada and a number of other countries have
repeatedly urged the United States to repeal the Byrd Amendment.
Retaliation is not our preferred option, but it is a necessary action.
International trade rules must be respected.” Steve
Alexander, executive director of the Consuming Industries Trade
Action Coalition, says the most important reason to repeal CDSOA
is because “it is hurting the U.S. economy and U.S. consumers.
It encourages the abusive filing and perpetuation of trade cases.”
He says other trading partners are likely to soon join Canada and
the EU in retaliating against U.S. exports. American
steel producers—together with companies in industries such
as lumber, candles, foods, ball bearings and other products—have
received more than $1 billion in funds from the federal government
under the law over the past several years. Last year’s total
was $284 million. Among the steel industry recipients were The Timken
Co., $52 million; U.S. Steel Corp., $7.1 million; and AK Steel Corp.,
$6.8 million. American
companies that import products subject to these duties are hit twice,
contend CDSOA opponents—first by paying the duties and, second,
by seeing disbursements transferred to U.S. competitors. Legislation that would repeal the Byrd amendment, H.R. 1121, has gained support from various industries “impacted by trade-distorting federal handouts and by retaliation against U.S. exports.” MSCI In
aluminum products, U.S. members shipped 93,300 tons during February,
1.5 percent below January but 7.7 percent above the total tons shipped
in February 2004. Average daily shipments of aluminum products in
February held steady with January at 4,700 tons, but improved 9.3
percent from February 2004. U.S.
MSCI members were holding 3.5 months of steel inventories during
February, the same as in January, but total stocks of 15,794,400
tons were 20.2 percent above February 2004’s level. In aluminum
products, U.S. members held 357,900 tons, or 3.8 months on hand,
slightly above the level seen in January. But total stocks were
21.7 percent above that of February 2004, when the months on hand
rate was 3.4. In
Canada, MSCI members shipped 451,400 tons of steel in February,
up 1.8 percent from January’s shipments, but 10.2 percent below
February 2004 shipments. Average daily shipments improved 1.8 percent
from January, but fell 9.9 percent from the same month last year.
Canadian
steel inventories stood at 1,361,500 tons in February, 0.7 percent
above January, but the months on hand rate declined to 3.0 from
3.1, month over month. Compared with February 2004, when the months
on hand rate was 2.3, steel inventories increased 17.2 percent.
MSCI’s
Canadian members shipped 9,100 tons of aluminum products during
February, 1 percent over January and 5.8 percent over the same month
a year ago. Average daily shipments remained steady at 500 tons
since January. Canadian aluminum inventories stood at 3.5 months on hand, with total stocks of 31,800 tons, up 2.5 percent from January inventories, when the month on hand rate was 3.4. This compares with February 2004, when stocks were 18.2 percent lower at 26,900 tons. AISI While
total net imports declined 18 percent and finished steel imports
20.2 percent compared with the previous month, year-to-date figures
show increases of 21.4 and 19.7 percent, respectively. Year-to-date
imports are up significantly in a number of key finished product
categories, AISI says. Imports of hot-rolled sheet, for example,
rose 36 percent. Other increases were recorded in hot-dip galvanized
sheet and strip, up 124 percent; plates in coil, up 100 percent;
all other metallic-coated sheet and strip, up 100 percent; cold-rolled
sheet, up 90 percent; tin plate, up 63 percent; structural pipe
and tubing, up 45 percent; oil country goods, up 44 percent; and
cold-finished bar, up 39 percent. U.S.
spot prices for hot- and cold-rolled sheet in February fell for
the fifth month in a row, according to data from Purchasing Magazine.
Sheet
prices in the United States have dropped, while sheet prices in
Asia and Europe have risen, so that importing these products has
become far less attractive for the domestic buyer compared to six
months ago, says Michelle Applebaum, managing director of Michelle
Applebaum Research Inc., Highland Park, Ill. “We
expect to see a dramatic decline in imported steel of all types
in the second quarter, with imports likely dropping below 2 million
tons, reflecting increasingly less attractive foreign steel price
offerings in the U.S.,” Applebaum predicts. William
E. Gaskin, president of the Precision Metalforming Association,
Independence, Ohio, worries about lower imports. PMA members want
the International Trade Commission to remove antidumping and countervailing
duties on hot-rolled steel from Japan, Brazil and Russia, which
have been in place for five years and are up for a sunset review
by the commission. A final decision is expected this month. “Since
the domestic steel industry is unable to meet demand for hot-rolled
steel in the United States, imports are essential,” Gaskin
says. “Easing the duties will help steel consumers more easily
obtain the steel they need at globally competitive prices.”
Steel
consumers are facing high domestic steel prices, along with delayed
shipments and quality issues, he asserts. According
to a survey, PMA members continued to report difficulty getting
the steel they require. Fifty-five percent of survey respondents
said they received only partial shipments in February, while 80
percent experienced late shipments. IISI China
produced 24.8 million metric tons of crude steel in February, up
21.2 percent vs. the same month in 2004. Total production for Asia
was 41.4 million tons, a rise of 10.3 percent from February 2004. Production
in the 25 European Union countries reached 15.1 million tons in
February. Production dropped in France by 4.2 percent, Germany by
1.4 percent, and the United Kingdom by 5.8 percent, compared to
the same month in 2004. Output in Italy grew by 3.1 percent. In
North America, production fell in Canada by 6.7 percent and the
United States by 3.0 percent. Year-to-date production in the region
was 21.3 million tons. Iran
produced 786,000 metric tons of crude steel in February, a rise
of 13.4 percent compared to the same month last year. Total Iranian
production year to date stood at 1.5 million tons. PMA When
asked whether they expect an increase, decrease or no change in
general economic activity over the next three months, 43 percent
of respondents said they anticipate business conditions will improve
(the same percentage as in February), 47 percent said activity will
remain the same (compared to 50 percent in February) and 10 percent
predicted a decrease (up from 7 percent in February). However, while current average daily shipping levels are above those of three months ago, metalformers expect a dip in incoming orders over the next three months. Just 48 percent of companies said orders will rise (down from 56 percent in February), 36 percent expect no change (compared to 34 percent a month earlier) and 16 percent anticipate a decline in orders (up from 10 percent in February). ISSF Growth
was driven by a particularly strong fourth quarter of 2004. Compared
to the same period of 2003, global stainless steel production grew
9.3 percent during the fourth quarter of 2004. Asia
is the largest stainless steel producing region in the world. Total
Asian production grew by almost 12 percent to 11.9 million metric
tons. This was on top of an already high increase in production
of 18 percent in 2003. All
countries in Asia with meltshops contributed to this growth. Production
in China grew by 33 percent over 2003. South Korea, with 18 percent
growth, and India, with 11 percent greater output, also showed strong
increases. Western
Europe and Africa combined make up the second largest stainless
steel producing area. Total output grew by 4.1 percent in 2004,
bringing production in this area to 9.4 million metric tons. Production
in Central and Eastern Europe totaled 343,000 metric tons in 2004.
The region has shown a strong increase in consumption of stainless
steel. However, local production facilities were unable to meet
growing demand. Growth in the Americas equaled 3.5 percent in 2004, the same rate as in 2003. Total output in 2004 was 2.9 million metric tons, even though Canada halted stainless steel production during the second half of 2004 due to the closure of Slater Steel Inc. Briefs Summit Corporation of America, Thomaston, Conn., has joined the Copper and Brass Servicenter Association, Wayne, Pa., as a member in the trade group’s Metal Strip Plater category. Summit is led by President Harry Scoble. Four companies have joined Specialty Steel Industry of North America, a Washington, D.C.-based trade group. They are AK Steel Corp., Middletown, Ohio; Charter Specialty Steel, Saukville, Wis.; Crucible Specialty Metals, Syracuse, N.Y.; and Universal Stainless & Alloy Products Inc., Bridgeville, Pa. SSINA also promoted former associate member companies to full membership status. As a result, Haynes International Inc., Kokomo, Ind.; Precision Rolled Products Inc., Florham Park, N.J.; and Special Metals Corp., Huntington, W.Va., have joined the board of directors. The Superalloys Committee of SSINA completed its upgrade and overhaul of its Web site: www.ussuperalloys.com. The site features descriptions of superalloys, a list of production facilities and capabilities of U.S. producers, news and contact information. People
|
|
Questions or comments about Metal Center News. E-mail feedback@metalcenternews.com