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Metalforming Association Applauds Increase in Steel Imports
WASHINGTON -- The Precision Metalforming Association welcomed the increase in steel imports in June as reported by the U.S. Department of Commerce, stating that "steel consumers in the U.S. desperately need access to competitively priced steel."The department released preliminary steel import data for June that showed total steel imports at 2.9 million tons, an increase of 9% over May 2004. Year-to-date import levels through June are 14 million tons, an increase of 30% from 2003 levels."PMA is encouraged by the rise in steel imports," says President William E. Gaskin. "Since domestic steel production is not sufficient to meet U.S. steel consumers' demand, it is imperative that steel consumers have access to imports. While the current increase in steel imports is positive news for U.S. steel consumers, the year-to-date steel import figures for 2004 are still 24% lower than the 'normal' pre-tariff levels of 2000."An analysis of data for hot-rolled and cold-rolled sheets-- the primary types of steel used by PMA members -- shows that steel imports rose 17% in the first six months of 2004 compared to year-to-date levels in 2003. However, compared to the pre-tariff levels of 2001 and 2000, imports of hot- and cold- rolled steel are down 10% and 49%, respectively."There is still a shortage of hot- and cold-rolled steel in the United States that is causing steel consumers to be uncompetitive in the global marketplace," Gaskin says. "Prices are higher by $100 to $200 per ton in this country compared to elsewhere in the world."The ongoing concern of U.S. steel consumers over access to steel supplies is shown by PMA's June 2004 Steel Report, highlighted as follows:64% of companies reported that their businesses are being critically, very significantly or significantly disrupted by the current steel marketplace.39% experienced cancelled orders for steel they expected to receive in June.89% only received partial shipments of steel.Further, one of the most severe impacts on steel-consuming companies is the inability of many to pass along the increased cost of steel to their customers. More than three-fourths (77%) of responding companies attempted to recover base price increases, with just 35% reporting recovery of most of the base price increases they experienced.The Precision Metalforming Association is the full-service trade association representing the $41 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, fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry.Visit Precision Metalforming Association: www.metalformingadvocate.org "