Aluminum Extruders Declare
China Guilty of Unfair Trade
MSCI: Steel Inventories Decline
to Lowest Level in 17 Months
AISI: Steel Shipments Down
From Previous Month, Year
IISI: World Steel Production
Up 5.3 Percent in July
SSINA: Stainless Imports UP, Consumption Down
CBSA: Red Metals Down Again
PMA: Metalforming Companies
Expect Improving Conditions

Aluminum Extruders Declare
China Guilty of Unfair Trade
The Aluminum Extruders Council, Wauconda, Ill., has determined that the People’s Republic of China is guilty of unfair trade practices in the exporting of aluminum extrusions to the United States and Canada.

“The data gathered provides substantial evidence that imports of aluminum extrusions from China are being dumped and are benefiting from countervailable subsidies. There is no question that Chinese imports are being sold in the United States at unfairly low prices,” says AEC Counsel Stephen Jones. “Accordingly, a successful anti-dumping/countervailing duty petition and the imposition of AD and CVD orders likely would impose substantial duties on these imports.”

The AEC board of directors decided to pursue an investigation into possible unfair trade practices earlier this year, and received near-unanimous support from member companies surveyed. The AEC engaged outside legal counsel to gather data from AEC members.

While the data gathered related to U.S. companies, Jones indicated that a similar conclusion could be drawn regarding Canada, where a similar analysis is being pursued.

“The council has always been a champion of expanding markets and fair trade. AEC has also been a champion of best industry practices, including fair trade practices. It was for this reason that AEC decided to conduct this evaluation to determine, once and for all, whether trade was being conducted in accordance with the fair practices as established by the World Trade Organization,” says AEC President Rand Baldwin. “The information we’ve gathered clearly shows evidence of unfair dealings on the part of Chinese importers. What happens next will now be determined by interested industry parties.”

MSCI
Steel Inventories Decline
to Lowest Level in 17 Months
Inventories of steel and aluminum products continued to fall at U.S. and Canadian service centers in July, reflecting sluggish summer demand and the uncertain economic environment, according to the latest Metals Activity Report from the Metals Service Center Institute, Rolling Meadows, Ill.  Despite the continuing declines, however, inventories expressed in terms of months of supply on hand have not yet reached the lows seen in other inventory cycles.

Steel inventories at U.S. service centers fell to 13.4 million tons at the end of July, 12 percent lower than the same month a year ago, and the lowest level since February 2006. Despite the decline, steel stockpiles remained well above the cyclical low for U.S. steel inventories of 12.5 million tons reached in November 2005. U.S. aluminum inventories, at 314,300 tons, were off 16.7 percent from a year ago, and at their lowest level since May 2004.

Canadian service center steel inventories dropped to their lowest level since May 2006, while aluminum stockpiles were at their lowest levels since June 2004.

Steel product activity
Shipments of steel products from U.S. service centers in July totaled nearly 4.2 million tons, 6.3 percent lower than the volume in July 2006. This marked the 11th consecutive month of year-over-year U.S. steel shipment declines. At July shipping rates, U.S. steel inventories were sufficient for 3.2 months of shipments, unchanged from June.

Steel shipments from Canadian service centers were 270,200 tons in July, down 9.6 percent from a year ago and the 12th consecutive month of year-over-year shipment declines. Canadian steel inventories of nearly 1.2 million tons, down slightly from June, were 12 percent lower than in July 2006 and, at July shipping rates, represented a 4.4-month supply.

Aluminum product activity
U.S. service center shipments of aluminum products totaled 94,500 tons in July, or 3.5 percent more than in the year-earlier month, marking the only positive number for the month. At July shipping rates, inventories represented a 3.3-month supply.

Canadian service centers shipped 8,900 tons of aluminum during July, down 1.9 percent from a year ago. Inventories fell to 26,800 tons, 20.3 percent lower than July 2006, and equal, at July shipping rates, to a 3.0-month supply.

AISI
Steel Shipments Down
from Previous Month, Year
U.S. steel mills shipped 8.9 million tons of steel in June, an 8.4 percent decrease from the 9.7 million tons shipped during the same month in 2006. Shipments were also off 1.9 percent from the 9.1 million tons shipped the previous month, according to the American Iron and Steel Institute, Washington, D.C.

A year-to-year comparison shows shipments to service centers and distributors in June declined by 11 percent; automotive shipments declined by 2.8 percent; construction and contractors’ products declined by 3.1 percent; and oil and gas shipments declined by 9.6 percent.

AISI also released import totals for July, reporting that 3.2 million tons were imported during the month, the second-highest monthly total in 2007 and 6 percent above the previous month. Finished steel imports totaled 2.5 million tons, up 2 percent from June’s figures.

Steel imports are down compared to 2006, both in the monthly figures and for the year to date.

The largest import increases in July compared to June included sheets and strip and all other metallic coated, up 45 percent; plates cut length, up 42 percent; and rebar, up 23 percent.

“Despite high inventories and slowing demand in some segments, the U.S. market remains very attractive to foreign producers, including those in non-market economies with a history of shipping dumped and subsidized product to the United States,” says Ward Timken, chairman of the board of The Timken Co. and chairman of AISI.

IISI
World Steel Production Up 5.3 Percent in July
World crude steel production for the 67 countries reporting to the International Iron and Steel Institute was 109.9 million metric tons in July, a 5.3 percent increase from July 2006.

In North America, steel production increased slightly during the month to 11.3 million tons, with the U.S. down .06 percent to 8.4 million tons, Canada up 5.4 percent to 1.42 million tons and Mexico up 6.3 percent to 1.35 million tons.

In the EU-27, Germany produced 4.0 million tons of crude steel in July, little changed from the same month last year. The United Kingdom produced 1.2 million tons, an increase of 0.3 percent on the same month of 2006.

Chinese production was 41.3 million tons in July, an increase of 14.5 percent compared to July 2006.

SSINA
Stainless Imports Up, Consumption Down
Imports of stainless steel totaled 332,026 tons in May, a 7 percent increase over the first five months of 2006, according to the Specialty Steel Industry of North America, Washington, D.C. U.S. consumption was 994,829 tons, down 5 percent. Import penetration was 33 percent, up 3 percent.

Following is year-to-date data for individual product categories:

• Stainless steel sheet/strip: Imports were 184,435 tons, an 8 percent decrease; U.S. consumption was 660,323 tons, a 13 percent decrease.
• Stainless steel plate: Imports were 58,876 tons, a 75 percent increase; U.S. consumption was 162,801 tons, a 26 percent increase.
• Stainless steel bar: Imports were 54,195 tons, a 22 percent increase; U.S. consumption was 104,593 tons, a 16 percent increase.
• Stainless steel rod: Imports were 14,487 tons, a 15 percent increase; U.S. consumption was 30,519 tons, an 11 percent increase. 
• Stainless steel wire: Imports were 20,033 tons, a 1 percent increase; U.S. consumption was 36,592 tons, a 1 percent increase.  
• Alloy tool steel: Imports were 45,128 tons, a 6 percent increase; U.S. consumption was not calculable.
• Electrical steel: Imports were 47,353 tons, a 98 percent increase; U.S. consumption was 184,893 tons, a 9 percent increase.  

CBSA
Red Metals Down Again
Though shipments of copper products declined significantly in July—traditionally a slow month—distributors remain cautiously optimistic about the remainder of the year, reports the Copper and Brass Servicenter Association, Wayne, Pa.

July’s average daily shipping rate was down 5 percent compared to the previous month, and 4 percent compared to July 2006. For the first seven months of the year, red metals shipments declined 7.2 percent compared to the same period last year, CBSA reports.

July copper shipments totaled 13,300 pounds and alloy shipments 19,546 pounds for a total of 32,846, according to CBSA’s member survey. This compares to 12,481 pounds of copper and 19,721 pounds of alloy products, or a total of 32,562 pounds, in July 2006.

Though total shipments year to year were nearly the same, the average daily shipping rate differed because most companies closed for two days last year, rather than just one, for the Fourth of July holiday.

PMA
Metalforming Companies
Expect Improving Conditions
Metalforming companies expect business conditions to improve slightly during the next three months, according to the August 2007 Business Conditions Report from the Precision Metalforming Association, Cleveland. Conducted monthly, the report is an economic indicator for manufacturing, sampling 150 companies in the U.S. and Canada.

When asked to predict the trend in general economic activity over the next three months, 29 percent of participants said that conditions will improve, up from 23 percent in July. Only 15 percent anticipated a decline in business conditions, down from 17 percent in July. 

Metalforming companies also expect improvement in incoming orders during the next three months. Forty-three percent of respondents forecast an increase in orders, up from 32 percent in July.