Jul 30, 2003 By Lara Jakes Jordan Associated Press Writer 3 min read

WASHINGTON (AP) – American companies imported 1.6 million metric tons of steel in June, a slight dip from the previous month and a big drop from the same period last year, according to preliminary data released Tuesday by the U.S. Commerce Department. June’s imports were valued at $800 million – the second lowest level of the year. In May, U.S. companies imported 1.7 million metric tons of steel, worth $900 million. In June 2002, the companies imported 2.5 million metric tons, worth about $1 billion.

Imports peaked at the start of the year, with 2.3 million metric tons worth $1 billion in January.

The import levels are under particular scrutiny this summer because the Bush administration will soon decide whether to continue tariffs on foreign-made steel that began over a year ago. Representatives of both sides of the debate agreed Tuesday that the new data indicate that the tariffs have, indeed, stemmed imports into the U.S. market.

But they continue to clash over whether the tariffs should be continued.

“When these imports were booked, the market was weak; the dollar was even weaker than it is right now,” said David Phelps, president of the Washington-based American Institute for International Steel. AIIS opposes the three-year tariffs, which domestic steel consumers have blamed in part for 2.5 million lost jobs over the last three years.

Phelps said the tariffs had caused “some of our long-standing trading partners being held back from the market.”

President Bush imposed the tariffs in March 2002 to give battered domestic steel producers breathing room to consolidate. More than 30 domestic steel companies have declared bankruptcy since 1997, eliminating 50,000 jobs.

A U.S. International Trade Commission midpoint review of the tariffs effects must be finished by Sept. 19. Meanwhile, the World Trade Organization earlier this month ruled the tariffs violated global trade rules – a decision being appealed by the United States.

The president of Charlotte, N.C.-based domestic steel producer Nucor Corp. called the tariffs continuation “absolutely critical.”

“Given the paramount need of U.S. steel companies to complete their restructuring and consolidation process … it is absolutely critical,” said Nucor president Daniel R. DiMicco, who chairs the American Iron and Steel Institute in Washington.

A spokesman for the United Steelworkers of America, which supports the tariffs, did not immediately return a call seeking comment. So far this year, imports have decreased from 2002 levels, Tuesday’s data showed. Through May, the latest final data available, U.S. companies imported 9.3 million metric tons of steel – down 1.7 million tons from the same period the previous year.

The largest commodity decreases between year-to-date levels were in blooms, billets, slabs and reinforcing bars, and overall imports dipped from Brazil, Russia, and Japan.

Imported hot rolled sheets increased from 2002 to 2003, and Mexico sent more steel to the United States during that period than previously.

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On the Net:

U.S. Foreign Trade Statistics:

http://www.census.gov/foreign-trade/Press-Release/2003pr/06/steel/