86 

### IRON AND STEEL1 (Data in million metric tons of metal, unless otherwise noted)
Domestic Production and Use: The iron and steel industry and ferrous foundries produced goods valued at about $72 billion. The steel industry consisted of about 105 companies that produced raw steel at about 144 locations, with combined raw steel production capability of about 119 million tons. Indiana accounted for about 23% of total raw steel production, followed by Ohio, 16%, and Pennsylvania, 7%. Pig iron was produced by 13 companies operating integrated steel mills, with about 35 blast furnaces in continuous operation. The distribution of steel shipments was estimated as follows: warehouses and steel service centers, 25%; transportation (predominantly for automotive production), 13%; construction, 16%; cans and containers, 3%; and others, 43%. Ferrous foundries, numbering about 1,100, continued to be importers of pig iron into the United States, mainly from Brazil, Russia, and Ukraine.
Salient Statistics—United States: 1 1997 1998 1999 2000 2001 e Pig iron production2 49.6 48.2 46.3 47.9 44.2 Steel production: 98.5 98.6 97.4 102 92.9 Basic oxygen furnaces, percent 56.2 54.9 53.7 53.0 53.2 Electric arc furnaces, percent 43.8 45.1 46.3 47.0 46.8 Continuously cast steel, percent 94.7 95.5 95.9 96.3 96.8 Shipments: Steel mill products 96.0 92.9 96.3 99 92.6 Steel castings3 1.2 1.3 1.2 1.0 1.0 Iron castings3 9.6 9.8 9.8 9.5 9.5 Imports of steel mill products 28.3 37.7 32.4 34.4 26.2 Exports of steel mill products 5.5 5.0 4.9 5.9 5.6 Apparent steel consumption4 114 118 116 119 118 Producer price index for steel mill products (1982=100) 5 116.4 113.8 105.3 108.4 100.7 Steel mill product stocks at service centers yearend6 6.6 7.7 7.7 7.8 7.1 Total employment, average,number7 Blast furnaces and steel mills 163,000 160,000 e 160,000 e 160,000 160,000 Iron and steel foundries 130,000 132,000 e 132,000 e 132,000 132,000 Net import reliance 8as a percentage of apparent consumption 15 22 17 18 15 Recycling : See Iron and Steel Scrap and Iron and Steel Slag. Import Sources (1997-2000) : European Union, 19%; Canada, 14%; Japan, 10%; Mexico, 9%; and other, 48%.
Tariff: 9 Item Number Normal Trade Relations9 Mexico 12/31/01 12/31/01 Pig iron 7201.10.0000 Free Free. Carbon steel: Semifinished 7207.12.0050 1.3% ad val. 0.8% ad val. Structural shapes 7216.33.0090 0.3% ad val. 0.1% ad val. Bars, hot-rolled 7213.20.0000 0.6% ad val. 0.3% ad val. Sheets, hot-rolled 7208.39.0030 1.5% ad val. 0.9% ad val. Hot-rolled, pickled 7208.27.0060 1.5% ad val. 1.0% ad val. Cold-rolled 7209.18.2550 1.0% ad val. 0.6% ad val. Galvanized 7210.49.0090 2.0% ad val. 1.3% ad val. Stainless steel: Semifinished 7218.91.0015 1.6% ad val. 1.0% ad val. 7218.99.0015 1.6% ad val. 1.0% ad val. Bars, cold-finished 7222.20.0075 3.2% ad val. 2.1% ad val. Pipe and tube 7304.41.3045 2.3% ad val. Free. Cold-rolled sheets 7219.33.0035 3.0% ad val. 2.0% ad val. Depletion Allowance: Not applicable. Government Stockpile: None.

Prepared by Michael D. Fenton [(703) 648-4972, mfenton@usgs.gov, fax: (703) 648-7757]87 

### IRON AND STEEL Events, Trends, and Issues : During the first 8 months of 2001, monthly pig iron production fluctuated near 4.1 million tons, and monthly raw steel production fluctuated near 8.5 million tons. Production totals during these periods decreased about 12% for pig iron and 10% for steel from those of 2000. Shipments of steel mill products estimated for 2001 were down 7% compared with those of 2000. Raw steel production was beginning a downward trend during the second half of 2001. To the detriment of steel producers, the longest economic expansion in U.S. history was showing signs of weakening through the third quarter in 2001. Industrial activity declined in September 2001—the 12thstraight month of decline and the first of this duration since November 1944 through October 1945. Decreasing demand for vehicles and consumer goods and the steel to make them caused manufacturing operating capacity to decline in September 2001. Concurrently, steel imports began to increase in 2000 and continued to grow in the first half of 2001 as prices for steel products plunged to record low levels. By mid-2001, the United States had 119 antidumping and countervailing duty orders in place on steel imports, and 36 others were being considered. The International Trade Commission began a Section 201 investigation under the Trade Act of 1974 to determine whether the U.S. steel industry had been significantly harmed by excessive steel importation. Although the focus by all involved was on alleged dumping by foreign steelmakers, it was becoming clear that a more fundamental problem existed—the United States and the world had excess steelmaking capacity that needed to be reduced. A unique aspect of this latest round of economic difficulty for the domestic steel industry, allegedly caused by steel import dumping, was the high number of bankruptcies declared by steelmakers. In bankruptcy, as of mid-October 2001, were Acme Steel Co., Bethlehem Steel Corp., Erie Forge & Steel Inc., GS Industries Inc., LTV Steel Corp., Republic Technologies International LLC, and Wheeling-Pittsburgh Steel Corp.
World Production : Pig iron Raw steel 2000 2001 e 2000 2001 e United States 47.9 44.2 102 92.9 Brazil 27.7 27.1 27.8 26.3 China 131 140 127 135 European Union 91.6 91.3 158 157 Japan 81.1 79.2 106 104 Korea, Republic of 24.9 25.9 43.1 43.8 Russia 44.6 44.8 59.1 57.8 Ukraine 25.7 26.5 31.8 33.5 Other countries 96.5 92.7 190 178 World total (may be rounded) 571 573 845 828
World Resources : Not applicable. See Iron Ore.
Substitutes : Iron is the least expensive and most widely used metal. In most applications, iron and steel compete either with less expensive nonmetallic materials or with more expensive materials having a performance advantage. Iron and steel compete with lighter materials, such as aluminum and plastics, in the motor vehicle industry; aluminum, concrete, and wood in construction; and aluminum, glass, paper, and plastics in containers.

eEstimated.
1 Production and shipments data source is the American Iron and Steel Institute; see also Iron Ore and Iron and Steel Scrap.
2More than 95% of iron made is transported molten to steelmaking furnaces located at the same site.
3U.S. Department of Commerce, Census Bureau.
4Defined as steel shipments + imports - exports + adjustments for industry stock changes + adjustment for imports of semifinished steel products.
5Bureau of Labor Statistics.
6Steel Service Center Institute.
7Bureau of Labor Statistics. Blast furnaces and steel mills: SIC 3312; Iron and steel foundries: SIC 3320.
8Defined as imports - exports + adjustments for Government and industry stock changes.
9No tariff for Canada, Israel, and certain Caribbean and Andean nations. U.S. Geological Survey, Mineral Commodity Summaries, January 2002