COLUMBUS, Ohio, Jan. 2 -- Leading indicators for Ohio's steel
industry are up through the first nine months of 2003, but high steelmaking
supply costs are undermining earnings.

According to the Ohio Steel Council's third quarter 2003 data report,
steel production was 9.6 million tons for the first nine months, up 14 percent from the 8.4 million tons produced in the same period a year ago. For the quarter, steel production rose 17.75 percent. Steel shipments after three quarters in 2003 reached 10.1 million tons, a 13.7 percent increase from the 8.8 million tons shipped between January and September 2002. Steel shipments in the quarter were up 18.6 percent.
Increases may be attributed, in part, to the addition of International
Steel Group (ISG) to the Ohio Steel Council. ISG's data is now part of the
aggregate figures compiled by the urban studies program at Youngstown State University on behalf of the Council.

Pricing is up and demand is strong but high energy and scrap prices are
cutting into the slow and gradual recovery. In addition, coke shortages are
hurting many Ohio steelmaking facilities.

The Council expects these variables to balance out, in spite of President
Bush's elimination of the tariffs against unfairly traded steel imports.
During the third quarter, Wheeling-Pittsburgh Steel Corp., a member of the
Council, emerged from bankruptcy.
Employment at Ohio's top steel-producing companies is more than 16,000
through the first nine months of 2003, a slight increase from 15,939 over the same period in 2002.
Capital investment spending was $98,597,579 through September 2003, up 48 percent from $66,513,156 through the first nine months last year. Capital investment in the third quarter 2003 rose 140 percent from a year ago.
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., International Steel Group, Inc., Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, PRO-TEC Coating Company, Republic Engineered Products, Stark State College of Technology, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, V & M Star, WCI Steel, Inc., and Wheeling-Pittsburgh Steel Corp.

OHIO STEEL DATA REPORT: Third Quarter 2003
Item Quarter Ended September 30
2003 2002 % chg

Steel Production (tons) 3,166,377 2,689,024 17.75
Shipments (tons) 3,296,628 2,778,034 18.67
Payroll $215,309,293 $201,469,507 6.87
Average Employment 15,944 15,622 2.06
Capital Investment Spending $42,268,160 $17,570,296 140.57

OHIO STEEL DATA REPORT: Third Quarter 2003
Nine Months Ended September 30
2003 2002 % chg

Steel Production (tons) 9,616,291 8,426,160 14.12
Shipments (tons) 10,124,544 8,899,750 13.76
Payroll $671,708,802 $601,479,143 11.68
Average Employment 16,190 15,939 1.58
Capital Investment Spending $98,597,579 $66,513,156 48.24


SOURCE Ohio Steel Council