86


### IRON AND STEEL 1

(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 $63 billion. The steel industry consisted of about 83 com panies that produced raw steel at about 214 locations, with combined raw steel production capability of about 103 million tons. Indiana accounted for about 20% of total raw steel production, followed by Ohio, 15%, Michigan, 7% , and Pennsylvania, 6%. Pig iron was produced by 11 companies operating integrated steel mills, with about 33 blast furnaces in continuous operation. The distribution of steel shipments was estimated as follows: warehouses and steel service centers, 23%; construction, 16%; transportation (predominantly for automotive production), 13% ; cans and containers, 3%; and others, 45%. 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 : 1999 2000 2001 2002 2003 e Pig iron production 2 46.3 47.9 42.1 40.2 39.4 Steel production: 97.4 102 90.1 91.6 91.5 Basic oxygen furnaces, percent 53.7 53.0 52.6 49.6 48.0 Electric arc furnaces, percent 46.3 47.0 47.4 50.4 52.0 Continuously cast steel, pe rcent 95.9 96.4 97.2 97.2 97.1 Shipments: Steel mill products 96.3 99 89.7 90.7 94.7 Steel castings 3 1.2 1.0 0.8 1.0 1.0 Iron castings 3 9.8 9.4 8.3 83.3 7.8 Imports of steel mill products 32.4 34.4 27.3 29.6 21.7 Exports of steel mill prod ucts 4.9 5.9 5.6 5.4 8.2 Apparent steel consumption 4 116 120 107 107 104 Producer price index for steel mill products (1982=100) 5 105.3 108.4 101.3 102.3 108.9 Steel mill product stocks at service centers yearend 6 7.7 7.8 7.1 7.3 7.5 Total employment, average, number 7

Blast furnaces and steel mills 153,000 151,000 141,000 140,000 140,000

Iron and steel foundries e 127,000 125,000 117,000 116,000 116,000 Net import reliance 8 as a percentage of apparent consumption 17 18 16 15 9

Recycling : See Iron and Steel Scrap and Iron and Steel Slag.

Import Sources (1999-2002) : European Union, 18%; Canada, 15%; Mexico, 10%; Japan, 7%; and other, 50%.

Tariff : Item Number Normal Trade Relations 9 Mexico
12/31/03 12/31/03 Pig iron 7201.10.0000 Free Free.
Carbon steel:

Semifinished 7207.12.0050 0.4% ad val. Free. Structural shapes 7216.33.0090 0.1% ad val. Free. Bars, hot-rolled 7213.20.0000 0.2% ad val. Free. Sheets, hot-rolled 7208.39.0030 0.5% ad val. Free. Hot-rolled, pickled 7208.27 .0060 0.5% ad val. Free.
Cold-rolled 7209.18.2550 0.3% ad val. Free.

Galvanized 7210.49.0090 0.6% ad val. Free.

Stainless steel:

Semifinished 7218.91.0015 0.5% ad val. Free.

7218.99.0015 0.5% ad val. Free. Bars, cold-finished 7222.20.0075 1.1% ad val. Free. Pipe and tube 7304.41.3045 0.8% ad val. Free.
Cold-rolled sheets 7219.33. 0035 1.0% ad val. Free.

Depletion Allowance : Not applicable.

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


### IRON AND STEEL

Government Stockpile : None.

Events, Trends, and Issues : During the first 8 months of 2003, m onthly pig iron production fluctuated near 3.3 million tons, and monthly raw steel production fluctuated near 7.6 million tons. Production to tals during these periods were not significantly different for pig iron and steel from those of 2002. Shipments of steel mill products during the first 8 months of 2003 were unchanged compared with t hose of 2002. Pig iron and raw steel production were trending downward during the first half of 2003.

A lull in bankruptcy activity during the second half of 2002 followed the bankruptcies of three major steelmakers in early 2002. The first half of 2003 saw an additional four bank ruptcies—Bayou Steel Corp; Kentucky Electric Steel, Inc; Slater Steel, Inc; and Weirton Steel Corp. U.S. integrated steelmakers and labor , represented by the United Steelworkers of America, finalized labor agreements that, in part, protect the current benefits held by retirees. Some domestic mills have not been cost competit ive with foreign mills partly because the latter have lower healthcare costs as a result of nationalized or subsidized healthcare programs.

The International Trade Commission’s section 201 in vestigation under the Trade Act of 1974 and subsequent recommendations in December 2001 led to a March 2002 impos ition of 8% to 30% duties on a wide range of steel products. In mid-2003, the World Trade Organization (WTO) concluded that Section 201 violated global trading rules, and the European Union (EU), Brazil, China, among others, challenged the legality of Section 201. The EU threatened retaliatory trade sanctions against the United States . The United States was scheduled to review its policy in September 2003 prior to its appeal of the WTO decision.

Projections of U.S. economic growth by Boston Federal Research Bank and International Monetary Fund were no greater than 3.5% and 2.2%, respectively, for 2003. But by the end of October 2003, t he U.S. Bureau of Economic Analysis reported an estimated increase in the annual rate of the real gross domestic product of 7.2% in the third quarter of 2003.

World Production : Pig iron Raw steel

2002 2003 e 2002 2003 e

United States 40.2 39.4 91.6 91.5

Brazil 27.8 31.0 29.6 27.5
China 171 190 182 200 European Union 89.4 90.4 157 159 Japan 81.0 81.7 108 110 Korea, Republic of 26.5 26.6 45.4 46.0

Russia 46.1 48.0 59.8 61.2

Ukraine 27.6 29.0 34.5 38.0
Other countries 94.4 97.9 196 191 World total (rounded) 604 634 904 924

World Resources : Not applicable. See Iron Ore.

Substitutes : Iron is the least expensive and most widely used me tal. In most applications, iron and steel compete either with less expensive nonmetallic materials or with more expensive materials hav ing a performance advantage. Iron and steel compete with lighter materials, such as alum inum and plastics, in the motor vehicle industry; aluminum, concrete, and wood in construction; and alumi num, glass, paper, and plastics in containers.

e Estimated.

1 Production and shipments data source is the American Iron and St eel Institute; see also Iron Ore and Iron and Steel Scrap.

2 More than 95% of iron made is transported molten to steelmaking furnaces located at the same site.

3 U.S. Department of Commerce, Census Bureau.

4 Defined as steel shipments + imports – expor ts + adjustments for industry stock changes + adjustment for imports of semifinishe d steel products.

5 Bureau of Labor Statistics.

6 Metals Service Center Institute.

7 Bureau of Labor Statistics. Blast furnaces and steel mills: SIC 3312; Iron and steel foundries: NAICS 331511.

8 Defined as imports – exports + adjustments for Government and industry stock changes.

9 No tariff for Canada, Israel, and certain Caribbean and Andean nations.

U.S. Geological Survey, Mineral Commodity Summaries, January 2004