[ Capabilities ][ Staff ][ Clients ][ Press ][ Library ][ Contact ]| (JETRO) Japan Seeks Resolution of Steel Issue Through Market Forces NEW YORK -- January 20, 1999 This afternoon the New York office of the Japan External Trade Organization (JETRO NY) released a newsletter focusing on steel imports in the United States. A complete copy of JETRO's FOCUS: STEEL NEWSLETTER can be viewed at its Internet web site:http://www.jetro.org/newyork/newsnet/focus/focus3.html A summary is posted below: Dramatic economic growth in the U.S. precipitated an unprecedented rise in domestic steel consumption during the first half of 1998. To maintain price stability and ensure adequate inventory in the face of an anticipated shortfall in domestic production, U.S. steel mills and large steel consumers dramatically increased their purchases of imported steel products above historical levels. Although the 1998 boom proved short-lived, this initial "blip" in demand resulted in a surge in foreign steel imports which U.S. steel watchers -- led by the domestic industry lobby -- now seek to counter through calls for retaliatory and other punitive measures, including quotas and anti-dumping charges. Among the steel-exporting countries caught in this crossfire is Japan, whose exports of steel products rose last year from its traditional level of 2% to 4% of total U.S. domestic consumption. In Japan's view, this increase was caused by cyclical market forces and several extraordinary factors specific to 1998. Looking forward, many analysts forecast that U.S. steel demand will decline in 1999, reducing anticipated U.S. demand for imported steel products. Orders contracted in 1998 have largely been shipped and the global market has already begun to make adjustments. Even if U.S. demand remains strong, the recent strong rise in the yen has decreased Japan's cost competitiveness in thissector. Therefore, U.S. imports from Japan in 1999 are expected to return to the more modest levels recorded in 1997 through natural market forces of supply, demand and pricing. This expectation reflects the views of the private sector. It does not reflect a commitment by the Government of Japan, which remains committed to the use of market based solutions as the best method to resolve occasional trade imbalances such as those that faced the U.S. domestic steel industry in 1998. Focus is published and disseminated by JETRO New York, 1221 Avenue of the Americas, New York, NY 10020 in coordination with KWR International, Inc. 140 West End Avenue, New York, NY 10023, Tel: 212-799-4294, Fax: 212-799-0517, E-mail: kwrintl@kwrintl.com. JETRO New York is registered as an agent of the Japan External Trade Organization, Tokyo, Japan and KWR International, Inc. is registered on behalf of JETRO New York. This material is filed with the Department of Justice where the required registration statement is available for public viewing. --30--mem/ny* bh CONTACT: JETRO NY |
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