SIGNS OF STEEL RECOVERY BEGIN TO EMERGE, BUT NUMBERS DO NOT SHOW CLEAR TREND YET

COLUMBUS, Ohio (May 29, 2002) –  While signs of an industry recovery begin to emerge, production and shipments by Ohio steel producers remain low in comparison to previous years, according to the Ohio Steel Council's first quarter 2002 data report.

Ohio's steel production, shipment, employment and capital spending are off between 17 and 45 percentage points as compared to the same quarter a year ago, but the decreases are attributed in large part to the closing of LTV Steel Company and CSC Ltd. in 2001.

"As a result of President George Bush's tariffs on imported steel products and consolidation within the industry, there is some restoration in pricing and demand worldwide. These improvements are being realized in the order books, production schedules, inventory and the bottom line of some Ohio companies," said Jim Cowan, co-chair of the Ohio Steel Council and general manager of North Star Steel Ohio in Youngstown.

"A resurgence in demand, supply and pricing lead us to believe that a recovery is on the way, but it may be another quarter before the trend becomes clear," Cowan explained.

According to the Ohio Steel Council's first quarter data, production was 2.7 million tons, down from 3.5 million in first quarter 2001, a drop of nearly 25 percent. Shipments were 2.9 million tons in first quarter 2002, down from 3.6 million tons in the year-ago period, a decrease of 17 percent.

For the first quarter 2002, employment was 16,122, down 25 percent from the year-ago period.

Capital spending was $21.4 million in first quarter 2002, down 44 percent from the year-ago period.

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., North Star Steel Ohio, 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.