Commerce Rules Chinese
Dumped Welded Pipe
Six U.S. pipe makers and the United Steelworkers commend the U.S. Department of Commerce for its final affirmative findings that Chinese producers of circular welded steel pipe are dumping below-cost product in the United States, and that pipe exports benefit from large subsidies provided by the Chinese government.

The Commerce Department found that Chinese pipe exports are being dumped at rates ranging from 69.20 to 85.55 percent. In addition, the Commerce Department found that Chinese pipe producers benefit from illegal government subsidies at rates ranging from 29.57 to 615.92 percent. The average subsidy rate for all respondents is 37.22 percent.

Significantly, this is the first investigation involving Chinese government subsidies to the steel industry. The Commerce Department also made final determinations with regard to critical circumstances, which will allow duties to be applied retroactively for 90 days from the dates of the preliminary determinations.

The International Trade Commission will vote June 20 on whether the U.S. industry producing circular welded pipe is injured as a result of dumped and subsidized pipe from China. The ITC made preliminary affirmative injury findings on July 31, 2007.

Pipe and tube imports under investigation increased from 10,000 tons in 2002 to 750,000 tons in 2007. As a result of this surge in low-priced imports, U.S. producers lost market share and suffered steep decreases in profitability over the period investigated. Approximately 25 percent of the total workforce employed in this segment of the U.S. pipe industry has been lost since 2002 as a result of Chinese imports, according to domestic producers.

The trade suit, filed in parallel with the International Trade Commission and the Department of Commerce on June 7, 2007, was brought by the USW and a coalition of pipe makers including: Allied Tube & Conduit, IPSCO Tubulars Inc., Northwest Pipe Co., Sharon Tube Co., Western Tube & Conduit Corp. and Wheatland Tube Co.

Circular welded steel pipe products, known as standard and structural pipe, are used in plumbing applications, HVAC systems, sprinkler systems, fencing and construction.

MSCI: Steel, Aluminum Shipments
Rise in the U.S, Canada
Steel and aluminum shipments from U.S. and Canadian service centers rebounded in April from unseasonably low levels in March, with year-over-year shipment increases in nearly all metals categories.

Inventories of both metals remained at levels well below total stocks at the end of April 2007 and were down, as well, from inventories reported at the end of March 2008, with one important exception, according to the latest Metals Activity Report from the Metals Service Center Institute. Rolling Meadows, Ill.

The one exception was inventories of steel products in the United States, which rose slightly to 12.4 million tons or 2.6 percent above U.S. steel stocks at the end of March. Metals customers appear to buy only when they need product, and service centers have maintained inventories closely aligned with demand.

Steel product activity
Shipments of steel products from U.S. service centers rose 3.3 percent in April, to 4.65 million tons, compared with April 2007. For the year to date, shipments of 17.7 million tons were down 2.8 percent from volume during the first four months of 2007. Month-end inventories of 12.4 million tons were 15.1 percent lower than April 2007 stockpiles and, at April shipping rates, represented a 2.7-month supply.

Steel product shipments from Canadian metals centers totaled 328,400 tons, a 6.6 percent increase from shipments in April 2007. Steel shipments for the first four months of 2008 totaled 1.28 million tons, a decline of 0.7 percent from the same period a year ago. Steel inventories held by Canadian service centers at the end of April totaled almost 1.1 million tons, or 15.2 percent below year-earlier levels and equal to a 3.3-month supply.

Aluminum product activity
Shipments of aluminum products from U.S. service centers rose in April to 95,400 tons, or 1.5 percent more than the amount shipped in April 2007. Shipments for the first four months of the year totaled 378,500 tons of aluminum, a decline of 6.7 percent from a year ago. At the end of April, U.S. service centers held aluminum inventories of 285,100 tons, down 19.2 percent from the end of April 2007 and, at April shipping rates, equal to a 3.0-month supply.

Canadian shipments of aluminum products totaled 10,600 tons in April, or 9.4 percent more than during April 2007. The year-to-date shipment total of 41,200 tons was 2.4 percent above the same period in 2007. Canadian aluminum inventories totaled 27,400 tons at the end of April, down 8.2 percent from a year ago and equal to a 2.6-month supply.

AISI: April Steel Imports Up
14.5 Percent vs. March
The United States imported a total of 2,944,000 net tons of steel in April 2008, nearly 15 percent more than the previous month, reports the American Iron and Steel Institute, Washington, D.C. That figure includes 2,194,000 net tons of finished steel, up 4 percent from March. Total and finished steel imports through the first four months of 2008 were down 7 and 9 percent, respectively, vs. the same period in 2007. On an annualized basis, total imports of steel in 2008 would hit 32 million net tons.

Key products with large increases in April compared to the month before include: ingots, billets and slabs (up 64 percent), hot-rolled sheets (up 40 percent), reinforcing bar (up 30 percent), wire rods (up 92 percent), plates in coil (up 33 percent) and cold-finished bar (up 32 percent).

For the first four months of 2008, products showing increases vs. the same period in 2007 were line pipe (up 26 percent), oil country goods (up 18 percent) and heavy structural shapes (up 10 percent).

AIIS: April Import Increase Offers
‘Some Relief for Consumers’
Imports increased in April to 2.943 million tons, up about 14.5 percent from March, reports the American Institute for International Steel, Washington, D.C., which considers this a positive step. AIIS represents foreign steelmakers.

“While one month a trend does not make, this welcome development for April will bring some relief to domestic consumers, who have been struggling with low inventories and rapid-fire price increases in 2008,” says AIIS President Dave Phelps. “Import arrivals in late 2007 and early 2008 were clearly too low for our customers, given the inability of the domestic industry to meet total demand.”

The largest increases in April in finished products were hot-rolled sheet and wire rods, both of which have been in tight supply this year. The large increase in slab imports will likewise increase finished product deliveries for the domestic mills, adding needed steel to the marketplace. “We hope that this trend will be sustained,” adds Phelps. 

Total steel imports in April hit 2.943 million tons compared to 2.571 million tons in March 2008, a 14.5 percent increase, and a 3.3 percent increase compared to April 2007.

According to year-to-date figures, imports decreased 7.3 percent compared to 2007 or from 11.504 million tons in 2007 to 10.664 million tons in 2008. Semifinished imports decreased from 2.223 million tons in 2007 to 1.769 million tons in 2008, a 20.4 percent decrease, based on preliminary reporting.

CBSA: Daily Shipping Rate Down for Copper
Though copper and copper alloy service centers shipped 3.4 percent more during April 2008 vs. the preceding month, the average daily shipping rate month-to-month was down by 1.3 percent. Compared to a year ago, this April’s shipping rate was down 6.3 percent. Total red metal shipments month-to-month were off just under 2 percent, reports the Copper and Brass Servicenter Association, Wayne, Pa.

For the initial four months of the year, total copper shipments were up about 1.6 percent, while alloy shipments were down nearly 4.5 percent, with total warehouse down 2.5 percent.

“Things are starting to drop off now [from the March/April period],” says one service center executive, while another feels the continued problems with the housing market, the automotive sector and others will “keep things from rebounding anytime soon.” 

ISSF: Stainless Production Forecast to Recover
The International Stainless Steel Forum, Brussels, expects that stainless crude steel production will recover this year after the decrease in production during 2007. Based on massive and unprecedented stock draws after the crash of nickel prices in May 2007, global stainless crude steel production decreased by 2.6 percent for the full-year 2007.

ISSF’s latest forecast anticipates that global stainless crude steel production will reach 29 million metric tons in 2008. The forecasted growth rate, above the long-term average, is based on the assumption that real demand will grow by approximately 6.0 percent, driven by a natural increase in industrial production.

Currently, ISSF does not see a big risk to stainless steel demand from underlying developments in the stainless-steel fabricating industries. However, a substantial risk is seen in rising raw material prices for iron, chrome and manganese.

IISI: Short Range Outlook
Positive for Global Steel
The International Iron and Steel Institute, Brussels, forecasts that 2008 will still be another strong year for the steel industry with apparent steel use rising from 1.202 billion metric tons in 2007 to 1.282 billion tons in 2008, an increase of 6.7 percent. New projections for 2009 suggest a global growth rate of 6.3 percent.

“The underlying assumption behind this forecast is that although some weakening in the U.S. and EU economies is expected, demand for steel will remain healthy, thanks in part to the emerging markets that will maintain their own dynamism,” says Ku-Taek Lee, IISI chairman.

The BRIC (Brazil, Russia, India and China) countries will again be leading the growth with an expected increase of 11.1 percent for 2008 and 10.3 percent for 2009. However, as steel demand growth increases in other emerging countries, the large gap in growth rate between BRIC countries and the rest of the world will narrow.

China apparent steel use is expected to grow by 11.5 percent in 2008 and 10.0 percent in 2009, accounting for 35 percent of the world total in 2008. This is expected to reach 36.7 percent of the world total by 2009.

For India, forecasts for apparent steel use point to an increase of 8.9 percent in 2008 and 12.1 percent in 2009.

Growth in the Russian market is forecasted to remain strong with 10.2 percent for 2008 and 11.2 percent for 2009, led mainly by the energy and construction sectors.

Apparent steel use in Brazil is expected to increase by 10.3 percent for 2008 and 8.9 percent for 2009, reflecting strong growth in the automotive, construction and engineering sectors.

In the EU, the growth in steel demand is predicted to continue at a more modest pace, following 2007 adjustments in inventory positions, leading to growth of 1.6 percent in 2008 and 2.3 percent in 2009.

2007 apparent steel use in the NAFTA region showed declines of 9.1 percent due to the slowing economy, inventory liquidation and decreased imports. 2008 will show a more stable position despite the uncertain economy, leading to a positive growth forecast of 1.9 percent, followed by 1.0 percent in 2009.

Briefs
Economic activity in the manufacturing sector failed to grow in May, while the overall economy grew for the 79th consecutive month, according to the latest Manufacturing Report on Business from the Institute for Supply Management, Tempe, Ariz. “The manufacturing sector failed to grow in May as the PMI of 49.6 percent fell below 50 percent for the fourth consecutive month,” says Norbert J. Ore, ISM survey chairman. “In relative terms, May was down slightly from April as the rate of contraction in manufacturing slowed. The Production Index was a bright spot as it moved above 50 percent after declining for two months. Manufacturers find themselves caught between rising costs and weakening demand in many industries. Exports continue strong due to the weak dollar. Without the weak dollar, the story would be much more negative in manufacturing.”

The Small Business Research Board, Buffalo Grove, Ill., reports that its Manufacturing Industry Small Business Confidence Index increased to 43.66 during the first quarter of 2008 from the 28.66 recorded the prior period. All three major indicators were higher and contributed to the increase in the index, according to the report co-sponsored by International Profit Associates. The poll of owners and managers of manufacturing companies indicated that 41 percent are expecting the economy to improve during the next 12 months, up from 23 percent who believed the economy would improve as reported in the fourth quarter of 2007. Fifty-four percent of the same group expect revenues to increase during the coming 12 months vs. 37 percent who predicted revenue increases during the previous quarter. Plans for hiring were also more optimistic with 36 percent saying they would increase hiring during the next 12 months vs. the 26 percent who said they would increase hiring during the prior period.

Seven metals industry leaders have been elected directors of the Metals Service Center Institute, replacing seven directors who have retired from the board. The new directors include: C. Lourenço Gonçalves, Metals USA Holdings Corp., Houston; Brian R. Hedges, Russel Metals Inc., Mississauga, Ontario, Canada; James D. Hoffman, Earle M. Jorgensen Co., Schaumburg, Ill.; Steven F. Ambrose, Gerdau Ameristeel Corp., Midlothian, Texas; Ladd R. Hall, Nucor Corp., Charlotte, N.C.; David Britten, IPSCO Inc., Lisle, Ill.; and Barry Zekelman, John Maneely Co., Beachwood, Ohio.

Retiring as MSCI directors are: Joseph Alvarado, United States Steel Corp., Dallas, Texas; William J. Bresnahan, Hynes Steel Products Co., Youngstown, Ohio; Jay M. Gratz, Ryerson Inc., Chicago; Derek A. Halecky, PDM Steel Service Centers Inc., Stockton, Calif.; Clifford G. Kane, Kane Steel Co., Millville, N.J.; Michael Parrish, Nucor Corp., Charlotte, N.C.; and John Tulloch, IPSCO Inc., Lisle, Ill.

The Chicago-based Association of Steel Distributors recently announced its 2008 board of directors. ASD’s new president is Thomas N. Smith Sr., president of B & D Steel Co., Holland, Pa. He previously served as executive vice president of ASD. Smith replaces 2006-2007 president Dominic Vitucci Jr., president of Vitco Steel Supply Corp., in Dixmoor, Ill. Vitucci now assumes the role of immediate past president on the 2008 Board. Jim Barnett, president of Grand Steel Products, Inc., Farmington Hills, Mich., will serve as the executive vice president. Lisa Goldenberg, chief operating officer of Delaware Steel Co. of Pennsylvania, Fort Washington, Pa., will serve as treasurer. Dave Raco of Carnegie, Pa.-based Tomsin Steel Co. Inc., will remain in his role of eastern region vice president. Robert Pelles, president of Premium Metals Inc., Cleveland, Ohio, will be the central region vice president.

Following are additional ASD board members: Greg Gross, central region director, Northshore Metals, Deerfield, Ill.; Brian Robbins, central region director, Mid-West Materials Inc., Perry, Ohio; Steve Lutz, central region director, Tomson Steel, Middletown, Ohio; Mike Sawyer, central region director, Universal Metals LLC, Toledo, Ohio; Peter Dennen, central region director, Dennen Steel, Grand Rapids, Mich.; Tim Loeffel, central region director, Loeffel Steel Products, Inc., Barrington, Ill.; Mike Bush, central region director, Century Steel LLC, Chicago Heights, Ill.; Steven C. Bergman, eastern region director, Premier Steel Inc., Englewood, N.J.;  Albert J. Gedeon, eastern region director, Lane Steel Co. Inc., Pittsburgh, Pa.; and Ron Chase, eastern region director, Action Steel, Astoria, N.Y. William Feniger of Universal Metals LLC in Toledo, Ohio, retired from ASD’s board after serving a three-year term.

The American Iron and Steel Institute recognized Michael N. Meyers of United States Steel Corp. for his outstanding leadership as chairman of AISI’s Construction Market Committee. Meyers is general manager-service centers, electrical, agricultural & industrial equipment in U.S. Steel’s flat-roll products commercial organization. Meyers was instrumental in the initial development of the AISI Residential Advisory Group, which evolved into the Steel Framing Alliance, an organization launched in 1998 with the mission to grow demand for cold-formed steel framing in the residential and commercial building markets.

The Expanded Metal Manufacturers Association, Glen Ellyn, Ill., has endorsed the ASTM standard F2548-06 as the EMMA Standard for expanded metal security fencing. This specification covers selection and installation of expanded metal fence systems for applications on new or retrofit fences for commercial, industrial, governmental or institutional facilities as applicable to homeland security or where the possibility of malevolent incursion is significant. This specification is intended to guide those responsible for or concerned with the design and installation of an expanded metal fence system capable of denying or delaying unwanted access into or out of an area. In other action, Midwest Expanded Metal Inc., Waconia, Minn., has joined as the eighth member of EMMA. Midwest Expanded Metal is a custom expanded metal manufacturer of expanded metal coils and blanks-to-size with bonded edges.

Andrew S. Harshaw, chief operating officer, ArcelorMittal USA, has been appointed president of the Association for Iron & Steel Technology for 2008-2009. He succeeds past president Charles J. Messina, vice president, Praxair, Indianapolis, Ind.

The Fabricators & Manufacturers Association, International, Rockford, Ill., has announced the 2007 FMA/CNA Safety Awards winners. Open to all FMA and Tube & Pipe Association, International, members, the program recognizes metal fabrication companies that adhere to excellence in safety. The Safety Award of Honor is awarded to companies having perfect safety records—no recordable injuries or illnesses for the reporting period: AK Tube LLC, Columbus, Ind.; B. Walter & Co. Inc., Wabash, Ind.; FMT Inc., Findlay, Ohio; Great Lakes Contracting Inc., Milwaukee, Wis.; Main Steel Polishing Co., Tinton Falls, N.J.; Main Steel Polishing Co.-Boyle, Baltimore, Md.; Main Steel Polishing Co., Baltimore, Md.; McAbee Construction Inc., Tuscaloosa, Ala.; Nisshin Automotive Tubing LLC, Versailles, Ky.; Nova Group Inc., Napa, Calif.; and Welfab Inc., N. Billerica, Mass.