Specialty Metals Industry Group Releases Seven-Month Market Data

11 October 2005

The Specialty Steel Industry of North
America (SSINA) today released the latest available statistical data on
imports, U.S. consumption and import penetration covering YTD July 2005.
Comparisons refer to the same 2004 seven-month period. Following data
presented by specialty steel product line, total stainless steel, and total
specialty steel:

* Stainless steel sheet/strip: Imports were 220,665 tons, a 2% increase;
U.S. consumption was 969,870 tons, a 5% decrease; import penetration
was 23%, a two percentage point increase.

* Stainless steel plate: Imports were 47,551 tons, a 9% increase; U.S.
consumption was 154,678 tons, a 12% decrease; import penetration was
31%, a six percentage point increase.

* Stainless steel bar: Imports were 76,899 tons, a 72% increase; U.S.
consumption was 146,836 tons, a 27% increase; import penetration was
52%, a 13 percentage point increase.

* Stainless steel rod: Imports were 28,108 tons, a 12% increase; U.S.
consumption was 43,389 tons, a 15% decrease; import penetration was
65%, a 16 percentage point increase.

* Stainless steel wire: Imports were 26,485 tons, a 10% increase; U.S.
consumption was 46,821 tons, a 6% decrease; import penetration was 57%,
a nine percentage point increase.

Imports of total stainless steel (comprising the foregoing product lines)
YTD through July 2005 were 399,708 tons, a 13% increase; U.S. consumption was
1,361,595 tons, a 4% decrease; seven-month import penetration was 29%, a four
percentage point increase.

* Alloy tool steel: Imports were 71,969 tons, a 43% increase; U.S.
consumption and import penetration are not calculable.

* Electrical steel: Imports were 54,326 tons, a 19% increase; U.S.
consumption was 238,915 tons, an 8% increase; import penetration was
23%, a two percentage point increase.

Imports of total specialty steel (comprising stainless steel, alloy tool
steel and electrical steel) YTD through July 2005 were 526,003 tons, a 17%
increase; U.S. consumption was 1,660,937 tons, a 1% decrease; seven month
import penetration was 32%, a five percentage point increase. See chart for
additional data on imports, U.S. consumption and import penetration for 2004
and 2003.

SSINA is a Washington, DC-based trade association representing virtually
all continental specialty metals producers. Specialty metals are high
technology, high value stainless and other specialty alloy products.

Member companies are: AK Steel Corporation, Middletown, OH; Allegheny
Ludlum Corporation, Pittsburgh, PA and Allvac, Monroe, NC (both Allegheny
Technologies companies); Carpenter Technology Corporation, Reading, PA;
Charter Specialty Steel, Fond du Lac, WI; Crucible Specialty Metals, Syracuse,
NY; Electralloy, Oil City, PA; Haynes International Inc., Kokomo, IN;
ThyssenKrupp Mexinox SA de CV, San Luis Potosi, S.L.P., Mexico; North American
Stainless, Ghent, KY; Outokumpu Stainless, Inc., Schaumburg, IL; Precision
Rolled Products, Inc., Florham Park, NJ; Special Metals Corporation,
Huntington, WV; Techalloy Central Wire Group, Mahwah, NJ; Timken Latrobe
Steel, Latrobe, PA; Universal Stainless and Alloy Products, Bridgeville, PA;
and Valbruna Slater Stainless Inc., Fort Wayne, IN.

David A. Hartquist, an international trade attorney with the Washington,
DC law firm Collier Shannon Scott, PLLC, serves as lead counsel to SSINA.

U.S. Imports, Consumption and Market Penetration Data 1/
For Specialty Steel Product Lines
2005/2004/2003
(in short tons)

Imports
Increase/
Month YTD Decrease
Specialty Steel Jul Jul YTD 2005-
Product Lines 2005 2005 04
Stainless Sheet/Strip 28,224 220,665 2%
Stainless Plate 9,044 47,551 9%
Stainless Bar 12,190 76,899 72%
Stainless Rod 2,612 28,108 12%
Stainless Wire 2/ 3,624 26,485 10%
Total Stainless Steel
(Sheet, Strip, Plate, Bar, Rod &
Wire) 55,694 399,708 13%
Alloy Tool Steel 3/ 11,100 71,969 43%
Electrical Steel 7,293 54,326 19%
Total Specialty 74,088 526,003 17%

U.S. Consumption
Increase/
Month YTD Decrease
Specialty Steel Jul Jul YTD 2005-
Product Lines 2005 2005 04
Stainless Sheet/Strip 118,659 969,870 -5%
Stainless Plate 22,369 154,678 -12%
Stainless Bar 20,653 146,836 27%
Stainless Rod 4,448 43,389 -15%
Stainless Wire 2/ 6,607 46,821 -6%
Total Stainless Steel
(Sheet, Strip, Plate, Bar, Rod &
Wire) 172,737 1,361,595 -4%
Alloy Tool Steel 3/ NC NC NC
Electrical Steel 30,730 238,915 8%
Total Specialty 212,668 1,660,937 -1%

Seven Month
Import Penetration
YTD YTD
Specialty Steel Jul Jul
Product Lines 2005 2004
Stainless Sheet/Strip 23% 21%
Stainless Plate 31% 25%
Stainless Bar 52% 39%
Stainless Rod 65% 49%
Stainless Wire 2/ 57% 48%
Total Stainless Steel
(Sheet, Strip, Plate, Bar, Rod & Wire) 29% 25%
Alloy Tool Steel 3/ NC NC
Electrical Steel 23% 21%
Total Specialty 32% 27%

2004 and 2003 statistical data in tons follow:

Imports
Increase/
Specialty Steel 2004 Decrease
Product Lines 2004 vs. 2003
Stainless Sheet/Strip 435,775 42%
Stainless Plate 68,433 32%
Stainless Bar 83,533 23%
Stainless Rod 47,616 35%
Stainless Wire 41,816 22%
Total Stainless Steel
(Sheet, Strip, Plate, Bar, Rod & Wire) 677,173 37%
Alloy Tool Steel 3/ 94,641 8%
Electrical Steel 86,702 8%
Total Specialty 858,516 29%

U.S. Consumption
Increase/
Specialty Steel 2004 Decrease
Product Lines 04 vs. 03
Stainless Sheet/Strip 1,811,334 14%
Stainless Plate 288,035 2%
Stainless Bar 204,638 11%
Stainless Rod 73,641 16%
Stainless Wire 81,707 13%
Total Stainless Steel
(Sheet, Strip, Plate, Bar, Rod & Wire) 2,459,356 13%
Alloy Tool Steel 3/ NC NC
Electrical Steel 396,924 2%
Total Specialty 2,929,633 11%

2004 and 2003 statistical data in tons follow:

Twelve Month
Import Penetration

Specialty Steel 2004 2003
Product Lines
Stainless Sheet/Strip 24% 19%
Stainless Plate 24% 18%
Stainless Bar 41% 37%
Stainless Rod 65% 56%
Stainless Wire 51% 47%
Total Stainless Steel
(Sheet, Strip, Plate, Bar, Rod & Wire) 28% 23%
Alloy Tool Steel 3/ NC NC
Electrical Steel 22% 21%
Total Specialty 29% 25%

NOTE: Changes in import penetration are percentage point changes.

1/ Imports through 2004 adjusted to exclude hot bands imported for re-
rolling and reported under shipments.
2/ July 2005 Shipments of Wire estimated based on January - June data.
3/ Shipments of Alloy Tool Steel unavailable; hence consumption and
import penetration not calculable.

NC = Not calculable.

Prepared by Georgetown Economic Services for the Specialty Steel Industry
of North America