OHIO Report says state's steelmakers still see declines

Steel imports were up 34 percent in the third quarter, despite recently enacted steel tariffs.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
Ohio's steel industry isn't out of the woods yet.
A report from the Ohio Steel Council shows the state's major steelmakers continued to experience declines in production, shipments, employment and capital investments in the first three quarters of 2002.
Competition from cheap foreign imported steel is still affecting the state's steel production, despite new tariffs approved last year to stem the flood of imports.
The council said steel imports were up 34 percent in the third quarter, and this year's total is expected to be the fourth highest in history.
"Until we see a decrease in imported steel, we'll continue to experience pricing volatility and a decline in shipments," said Jim Cowan, president and chief operating officer of V & amp;M Star in Youngstown, formerly North Star Steel. Cowan is also co-chairman of the steel council.
The closings of CSC Ltd. and LTV Steel in Cleveland last year contributed to the decreased production and shipping levels, the council said, and the sluggish economy was a factor.
Production, employment drop
Ohio steelmakers produced 8.4 million tons of steel in the first nine months of 2002, down 19 percent from the 10.4 million tons produced in the same period a year ago.
Steel production was down 6 percent in the third quarter compared with that period in 2001.
Steel shipments reached 8.9 million tons for the first three quarters, a 12 percent decline from the 10.1 million shipped in the first nine months last year.
About 16,000 workers were employed by Ohio's largest steel producing companies in the first three quarters, a 19 percent decline from the same period in 2001.
Most of the employment drop was related to the closings of CSC and LTV. International Steel Group, the new owner of LTV, is not reporting data to the council.
Steelmakers invested $66.5 million on capital improvements from January through September, a 27 percent drop from the $90.8 million spent a year ago. Improvement spending was down 33 percent in the third quarter.
The council's quarterly report is compiled by the Youngstown State University Center for Urban Studies and includes data from its steel-producing members. Participants account for about 90 percent of all steel produced in Ohio.
Local steel-producing members are V & amp;M Star and WCI Steel.
vinarsky@vindy.com