Steel shipments were 79.1 million tons during the first three quarters of 1997. The added capacity raises the level of competition. The current peak in capacity utilization may be approaching an end. The steel industry is not a growth industry. Steel industry tonnage surpassed 100 million during 1997.
Most steel is consumed in the automobile and construction industries.
However, these two industries are most vulnerable to a down turn in the U.S. economy. The industry may need to consolidate into fewer companies for growth into the future. Bethlehem has acquired Lukens, Inc. which will create important synergies , enhance productivity, and reduce costs. High Scrap Costs. Currently, the minimills are in the mists of soaring scrap prices which will limit new entrants.