If so, the five years starting in 1997 would be by far the best five years of steel consumption in our history. Steel production in 2000 was good - but suffered greatly in the 4th quarter. This level represented one of the very best production years in U.S. history. However, weaker order books for the past six plus months have resulted in much lower capacity utilization rates - now just barely registering in the low 80s. Imports , while higher for 2000 compared to 1999 levels, have been decreasing steadily throughout the second half of 2000, as well as the first quarter of 2001.
Inventories remain too high , but they are improving - slowly.
Our members have been attempting to whittle down their inventories to bring them into line with shipping rates. While this is a normal and necessary part of the business cycle, the process of adjustment unfortunately is far from complete. Those inventories are coming down gradually and, given the flat rate of economic activity expected by our members during the 2nd quarter, service centers are likely to continue reassessing and readjusting their inventory levels for the near term. I Survey reinforce this view of the current and anticipated state of our market. Finally, foreign mills continue to be less active in seeking orders in North America, a downward trend that began last fall.