Leading indicators for Ohio's steel industry are up through the first nine months of 2003, but high steelmaking supply costs are undermining earnings.
According to the Ohio Steel Council's third-quarter 2003 data report, steel production was 9.6 million tons for the first nine months, up 14% from the 8.4 million tons produced in the same period a year ago. For the quarter, steel production rose 17.75%. Year-to-date steel shipments reached 10.1 million tons, a 13.7% increase from the 8.8 million tons shipped between January and September 2002. Steel shipments in the quarter were up 18.6%.
Increases may be attributed, in part, to the addition of International Steel Group (ISG) to the Ohio Steel Council. ISG's data is now part of the aggregate figures compiled by the urban studies program at Youngstown State University on behalf of the Council.
Pricing is up and demand is strong but high energy and scrap prices are cutting into the slow and gradual recovery. In addition, coke shortages are hurting many Ohio steelmaking facilities. The Council expects these variables to balance out, in spite of President Bush's elimination of the tariffs against unfairly traded steel imports.
Employment at Ohio's top steel-producing companies is more than 16,000 through the first nine months of 2003, a slight increase from 15,939 over the same period in 2002. During the third quarter, member company Wheeling-Pittsburgh Steel Corp. emerged from bankruptcy.
Capital investment spending was $98,597,579 through September 2003, up 48% from $66,513,156 through the first nine months last year. Capital investment in the third quarter 2003 rose 140% from a year ago.
The Ohio Steel Council is a public-private partnership designed to strengthen ties among the steel industry, the state of Ohio and its citizens. The Council's member organizations are AK Steel Corp., International Steel Group, Inc., Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, Pro-Tec Coating Co., Republic Engineered Products, Stark State College of Technology, The Timken Co., United Steelworkers of America, USS Lorain Pipe Mills, V & M Star, WCI Steel, Inc., and Wheeling-Pittsburgh Steel Corp.