Some experts said the industry's upswing had little to do with the tariffs.

Some experts said the industry's upswing had little to do with the tariffs.
PITTSBURGH (AP) -- U.S. Steel Corp. is bracing itself for the possibility that tariffs imposed last year may come to an end sooner than expected, a development that could affect the rate of consolidation in an industry just now showing signs of a rebound.
"I think it will affect all companies, buyers or sellers, and there will likely be less activity," said Thomas J. Usher, chairman and CEO of U.S. Steel.
White House advisers are pushing for an end to Section 201 tariffs on foreign steel before they were set to expire in 2005.
Consolidation
Since tariffs were imposed in 2002, there has been an unprecedented consolidation of the domestic industry, considered essential to survivors of a shakeout that has sent 41 U.S. companies into bankruptcy since 1997.
U.S. Steel, the nation's largest integrated steelmaker, made a major acquisition in National Steel and sealed what was considered a groundbreaking labor agreement with the United Steelworkers of America.
International Steel Group Inc. snapped up the assets of bankrupt Acme Metals, Bethlehem Steel and LTV Steel. Nucor, the mini-mill, acquired Trico Steel and Birmingham Steel.
While recent economic trends bode well for the steel industry, Usher said the acquisition of National Steel in the economic climate that preceded the tariffs would have been unlikely.
"We needed access to capital markets and debt markets, and the protections reduced a great amount of the uncertainties out there," he said. "It allowed us to do the acquisition that we probably would not have done if under the same market conditions near the end of 2001."
A number of industry experts, however, said things had to get worse before they got better, and the industry's upswing has little to do with tariffs imposed in March 2002.
They contend that bankruptcies led to reduced capacity and an increase in steel prices. That combined with the falling dollar has made imports pricier and prompted industry consolidation.
The euro rose to another record high against the U.S. dollar Wednesday amid worries about the U.S. trade and budget deficits. Steel imports have fallen in conjunction with the dollar.
The country imported 1.7 million net tons of steel in October, down 8.5 percent from September, according to the American Iron and Steel Institute. For the year, 19.2 million net tons have been shipped into the country.
, a decrease of nearly 29 percent, compared with the same period last year, according to the institute.
"As odd as it sounds, bankruptcy has been the prerequisite to consolidation," said Gary Hufbauer, an analyst with the Institute for International Economics in Washington. "If the tariffs have done anything, they've propped up weaker companies and delayed consolidation."