Imported Steel Is No Threat

I take issue with the view of James Flanigan in connection with the current steel import debate [“Steel’s Protest on Imports Warns of Dangers to All,” Nov. 8]. Imports have not been a threat to American steel mills.

For the last several years, steel users and steel producers alike depended on high-level tonnage of imports to maintain manufacturing efficiency. Steel consumption hit a new record in 1997 after a record 1996. The first half of 1998 was also an all-time high. The U.S. steel mills couldn’t fill the widened gap between demand and supply despite operating at record levels. In the first eight months of 1998, the U.S. industry’s operating capacity rate averaged 90%.

The industry could supply U.S. customers only by importing several million tons of steel annually. Imports did not undermine U.S. manufacturing.

Rather, numerous manufacturers, including General Motors and Caterpillar, needed ample supplies of steel to produce efficiently. It is interesting that these companies oppose the current American steel industry’s anti-import program.

CHARLES BUTLER

Director

Japan Steel Information Center

New York