LEADING INDICATORS FOR OHIO STEEL PRODUCERS DECLINE SHARPLY THROUGH THIRD QUARTER 2001

COLUMBUS, Ohio (January 17, 2002) –  Aggregate figures for shipments and production by Ohio steel producers showed sharp decreases in third quarter 2001, as LTV Steel Company scaled back production.

Steel production was 2.8 million tons for third quarter 2001, down 40 percent compared to 4.8 million tons in third quarter 2000. For 2001 ending third quarter, production dropped 23 percent compared to the same nine-month period a year ago.

Shipments were 2.9 million tons for third quarter 2001, down 26 percent compared to 3.9 million tons in the third quarter 2000. For 2001 ending third quarter, shipments dropped 17.6 percent compared to the same period a year ago.

Third quarter figures for 2001 do not include LTV, which was producing at a very low level during the quarter, according to company officials. LTV Steel continued to produce at a low level until December 7, 2001, when the U.S. Bankruptcy Court approved the company's plan to cease steel producing and sell or liquidate its steelmaking assets.

Employment for third quarter 2001 was 16,443, a 30-percent drop from third quarter 2000. Employment figures represent permanent positions in the workforce and do not reflect temporary layoffs.

Continuing a downward trend, capital spending was $26 million for third quarter 2001, down from $83.6 million in the year-ago period. For 2001 ending third quarter, capital spending was 58 percent off from the year-ago period.

"Market conditions continue to be very challenging, notwithstanding announced price increases for first quarter 2002," said James Cowan, co-chair of the Ohio Steel Council and general manager of North Star Steel Ohio in Youngstown.

"Ohio's steel industry contains a healthy mix of integrated production, electric-arc technology, high-end finishing and product production. With high-tech investments on our side, we are positioned for recovery. We are looking to the Bush Administration for appropriate trade remedies," Cowan said.

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, which account for approximately 90 percent of all steel produced in Ohio.

The Ohio Steel Council, appointed by the governor, 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 are AK Steel Corp., LTV Steel Company, North Star Steel, Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, Pittsburgh Logistics Systems, Inc., PRO-TEC Coating Company, Republic Technologies International, Stark State College of Technology, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, WCI Steel, Inc. and Wheeling-Pittsburgh Steel Corp.