Steel Market Remains Hot; Imports Rise Again in March

Steel imports continued to rise in March in response to strong customer demand in virtually all market segments, based on preliminary steel import data released by the U.S. Department of Commerce for March 2006.

Reflecting the strong growth of the economy - the GDP increased 4.8% in the first quarter - imports continue at a healthy pace in response to the strong economy.

Semifinished imports, used to augment domestic mills’ hot metal production, likewise reflect these conditions, increasing 88% in March 2006 over 2005 and nearly 50% higher in the first quarter of 2006 compared to the same 2005 period.

"Imports that arrived in March were ordered toward the end of 2005 during unprecedented price differentials between US and other international markets, especially Asia," said Dave Phelps, AIIS President.

The AIIS monthly survey predicted these trends and continues to predict strong arrivals in the near term. The monthly survey of importers may be viewed online at www.AIIS.org.

Total steel imports in March 2006 were 3.89 million tons compared to 3.65 million tons in February 2006, a 6.5% increase, and a 41% increase compared to March 2005. According to year-to-date figures for three months, imports increased 32.7% compared to 2005, or from 8.32 million tons in 2005 to 11.05 million tons in 2006. The data show that semifinished imported products increased by 88% in March 2006 as compared to March 2005. For the year-to-date period, semifinished imports have increased from 1.88 million tons in 2005 to 2.8 million tons in 2006, a 49.1% increase, based on preliminary reporting.

http://www.aiis.org

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