AISI Analysis Shows Long-Term Structural Problems as a Result of Indirect Steel Trade Deficits

The American Iron and Steel Institute (AISI) has completed a new analysis of U.S. "indirect" steel trade for the years 1999-2004. The report is now available to the public in hard copy for $600. The detailed report analyzes indirect steel trade between the U.S. and 11 major countries and four regions by eight major consumer markets.

The AISI report shows that for the period under review, the U.S. indirect steel trade deficit peaked on a value basis in 2004. It peaked on a tonnage basis in 2002 -- when the U.S. dollar was extremely overvalued, and this deficit (expressed in tons of steel) has remained at a very high level in subsequent years.

"We have a manufacturing crisis in the U.S. and NAFTA region, notwithstanding the enormous productivity gains of U.S. and North American producers of steel and steel-containing products in recent years. This analysis is further evidence of the hollowing out of America's manufacturing base. This shows that long-term trends and structural problems, such as currency manipulation and WTO tax discrimination, are a threat to all U.S. manufacturers. These problems must be addressed if we are to ensure the long-term health of manufacturing in America," Andrew G. Sharkey, III, president and CEO of AISI said.

AISI has been publishing data on U.S. indirect steel trade by world areas and steel-consuming markets expressed in tons of steel since 1984. These reports provide data on the total amount of indirect steel trade each year in the U.S. economy and show the main sources of foreign competition faced by major steel-using industries in the United States. This latest report updates data for the years 1999 and 2000, and includes detailed data for the last six years (1999-2004).

http://www.steel.org

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