Program of Trade Restraints Credited for 13.6% Drop in April : Decline in Steel Imports Expected to Continue
Steel imports declined 13.6% in April and further monthly declines will follow as President Reagan’s program of negotiated trade restraints takes hold, the head of a steel importers association said Friday.
“Since there is a five- to six-month gap between steel import orders and deliveries, we still have not seen full impact of the voluntary restraint agreements. This may not show for another month or more,” said Fred Lamesch, president of the American Institute for Imported Steel.
Imports accounted for 23% of the U.S. market in April and 26.3% of the domestic market over the first four months of the year, near the 26.4% mark for all of 1984, a record high level.
April’s imports of 1.9 million tons were down 300,000 tons from 2.2 million tons in April, 1984, the AIIS said, quoting figures compiled by the U.S. Commerce Department.
Imports over the first four months of the year declined 21,800 tons, or 3%, from 8.68 million tons in the period from January to April, 1984.
“While April tonnages dipped below the 2 million mark for the first time since last October, imports still captured a damaging 23% of the U.S. marketplace,” said Donald Trautlein, chairman of the American Iron and Steel Institute and chairman of Bethlehem Steel.
Domestic steel producers say imports are damaging to the nation’s steel industry because some foreign producers sell their products here at prices below those in their home markets.
The New York-based importers group says restraints on foreign steel will lead to shortages of some products and price increases.
Under pressure from American steelmakers, President Reagan last October announced a 5-year program of negotiated trade restraints with the world’s major steel producing nations to restrict imports to 18.5% of the U.S. market.
Since the limit is cumulative for each year and has been exceeded each month in 1985, imports will have to fall sharply over the remainder of the year if the President’s target of 18.5% is to be met, Trautlein said in a statement.
