Feb. 12, 2007 — The Ohio Steel Council's third-quarter 2006 data show increases in production and shipping as compared to the same period in 2005. Although fourth-quarter 2006 figures are not yet available, the council expects them to show a slight dip due to an inventory correction, which it says has continued into the first quarter of 2007.
Ohio steelmakers expect orders in 2007 to pick up and the year to shape up as a good one, although foreign steel imports remain a concern. The council notes other areas of concern include the economic health of the auto industry, as well as suppliers to the auto industry.
"We are in the midst of an inventory correction at the distribution level, but steel consumption at the end-user level continues to be good. Overall, we expect 2007 to be a good year for steel," said Patrick G. Tatom, Chairman of the Council and President and CEO of WCI Steel, Inc.
Third Quarter Results—In the third quarter of 2006, steel shipments in Ohio were 3.96 million tons, up 3.27% over the same period in 2005. Production for the quarter was 3.82 million tons, a 9.05% increase over the same period in 2005.
Nine-Month Results—Shipments were 12.1 million tons, up 6.08% from the same period in 2005. Production was 11.5 million tons, up 7.54% from the same period in 2005. Capital spending was $187.9 million in the first three quarters of 2006, a decrease of 23.4% over the year-ago period. Employment over the first nine months averaged 14,040—7.5% lower than the same period in 2005.
"In light of China's explosive growth in steel production, we are asking the Bush Administration and Congress to vigorously enforce and defend trade laws," Tatom said. As the largest steel exporter to the U.S., China was on pace to ship more than 5.3 million net tons of finished steel products to the U.S. in 2006, an increase of 131% over 2005. Steel production in China nearly doubled between 2003 and 2006 and is outpacing domestic consumption in China and global steel production.
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. Data are forwarded to the council in aggregate, so the contribution of any single company cannot be determined.
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 include:
- AK Steel Corp.
- Lorain Tubular Operations (of United States Steel Corp.)
- Mittal Steel USA
- Ohio Department of Development
- Ohio House of Representatives
- Ohio Senate
- PRO-TEC Coating Co. (a joint venture of U.S. Steel Corp. and Kobe Steel, Ltd.)
- Republic Engineered Products, Inc.
- The Timken Co.
- Thomas Steel Strip Corp.
- United Steelworkers of America
- V&M STAR
- WCI Steel, Inc.
- Wheeling-Pittsburgh Steel Corp.
- Cleveland State University
- The Ohio State University.