OHIO STEEL PRODUCTION AND SHIPMENTS DOWN FOR FIRST HALF OF 2007

COLUMBUS, Ohio (November 30, 2007) –  Production and shipments from Ohio’s steel producers declined during the second quarter and first half of 2007 compared with the same periods a year ago, according to newly released data from the Ohio Steel Council.

For the second quarter of 2007 production totaled 3,734,029 tons, down 4.57 percent from the second quarter of 2006. Average production for the first and second quarters of 2007 was 3,569,900 tons, a decrease of 7.7 percent from 2006’s first half average production of 3,867,709 tons.

“Our industry was affected by slowdowns in the automotive and housing sectors,” said Roger Lindgren, president and chief executive officer of V&M STAR and acting co-chairman of the Ohio Steel Council. “Weaknesses in these markets had ripple effects among automotive suppliers and areas such as appliances and construction, which are also major steel consumers.

“In addition, the continued growth of Chinese imports in value-added products, such as Oil Country Tubular Goods, challenges domestic shipments,” Lindgren said.

Overall, worldwide demand for steel remained robust, and the Ohio Steel Council expects 2007 to end strong, continuing the trend of recent years.

Steel shipments for the second quarter of 2007 were 3,933,345 tons, a decline of 3.79 percent from the 2006 second quarter total of 4,088,405 tons. Average shipments for the first two quarters of this year were 3,796,672 tons, down 7.74 percent from the same period in 2006.

Capital investment spending by the industry totaled $67,229,372 during the second quarter, compared with $74,928,150 in the second three months of 2006. Average spending for the first two quarters of 2007 was $60,038,753, versus $71,137,871 in 2006.

During the second quarter of 2007 steel company employment averaged 13,735, down 1.76 percent from the corresponding period in 2006. For the first two quarters employment averaged 13,554, down 4.6 percent from the first half of 2006.

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. The data is forwarded to the Ohio Steel Council in aggregate, so the contribution of any single company cannot be determined. For more data and past data reports, visit www.ohiosteel.org.

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 are AK Steel Corp., Lorain Tubular Operations (of United States Steel Corporation), ArcelorMittal, Ohio Department of Development, Ohio House of Representatives, Ohio Senate, PRO-TEC Coating Company (joint venture of U. S. Steel and Kobe Steel), Republic Engineered Products, Inc., Thomas Steel Strip Corp., The Timken Company, United Steelworkers, V&M STAR, WCI Steel, Inc., Wheeling-Pittsburgh Steel Corp., Cleveland State University and The Ohio State University.