Ohio Steel Shipments Improve

Shipments and production for Ohio steel producers were up in the first half of 2003, but earnings for many companies were undermined because of high energy and scrap prices.

According to the Ohio Steel Council's mid-year 2003 data report, production was 6.4 million tons in the first half of 2003, up from 5.7 million tons in the first half of 2002, an increase of 12.4 percent. Steel shipments were 6.8 million tons in the first half of 2003, up from 6.1 million tons in the year-ago period, an increase of 11.5 percent.

These increases may be attributed to the addition of International Steel Group to the Ohio Steel Council. ISG, the company that purchased the assets of LTV Corp., is now reporting data to the Ohio Steel Council.

"Steel pricing remains historically low and many steel companies are struggling due to a number of cost issues relating to energy and steel scrap," said Joseph Lapinsky, president and CEO of Republic Engineered Products and a member of the Ohio Steel Council.

"Nevertheless, there are overall improvements in market conditions, and President George Bush's tariffs on foreign steel imports remain an important variable enabling significant progress in efficiency and investment in technology," Lapinsky explained.

In the first half of 2003, employment rose 1.3 percent at Ohio's top steel-producing companies, from 16,097 in the first half of 2002.

Capital investment spending was $56.3 million in the first half of 2003, up from $48.9 million in the first half of 2002, an increase of 15 percent.

Natural gas prices rose 78 percent in the first half of 2003 alone, while prices for steel scrap are 30 percent higher than one year ago.

The Ohio Steel Data Report, compiled by Youngstown State University's Center for Urban Studies, covers statistics from Ohio facilities of the Council's steel-producing members.