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 , enbhance productivity, and reduce costs. The steel industry is at a significant amount of risk because of the problems with the Asian economies. The problem stems from cheap imported steel products that are dumped in the United States which erodes domestic steel manufacturers profit margins.