STEEL INDUSTRY Production increases, but costs are higher

Employment increased by 4 percent.
COLUMBUS -- Production by Ohio's steel industry rebounded last year, but high steel-making costs hurt earnings, the Ohio Steel Council said.
In its report for 2003, the council said demand for steel was on the rise, while order books at many companies were full.
Steel production increased 22 percent in 2003, from 10.7 million tons in 2002 to 13.1 million tons. For the fourth quarter, steel production rose 53 percent, to 3.5 million tons.
Steel shipments in 2003 increased 25 percent to 14.1 million tons from 11.3 million tons in 2002. Fourth-quarter steel shipments jumped 63 percent to nearly 4 million tons.
Demand increases
An increase in demand for steel, both domestically and globally, played a key role in the production and shipping increase. For example, export shipments from Ohio steel producers to foreign companies jumped 124 percent in 2003.
Producers, however, felt the impact of high energy and coke prices, the council said.
Ohio steel producers spent $400 million on natural gas in 2003 -- an increase of more than 48 percent over 2002 -- and nearly $190 million on coke in 2003 -- a 64 percent increase over 2002 spending figures. Coke is used as fuel in blast furnaces.
Employment grows
Employment at Ohio's top steel-producing companies grew nearly 4 percent to 16,021 in 2003. This hike can be attributed to the stronger order books and several acquisitions completed during the past year.
Capital investment spending increased 51 percent to $144.1 million in 2003. Members of the council include steelmakers, such as WCI Steel in Warren and V & amp;M Star in Youngstown, state agencies and universities.