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To: craig crawford who wrote (850)	10/16/2001 4:11:02 AM
From: craig crawford	Read Replies (1) \| Respond to of 1643

U.S. steelworkers urge gov't aid after bankruptcy biz.yahoo.com Claims that the United States needs a strong domestic steel industry are part of its war on terrorism are particularly disingenous, Phelps said. In 1991, during the Gulf War, only 117,000 tonnes of steel was used for U.S. military purposes out of 95 million tonnes produced that year, he said. At the same time, Phelps said the need for international cooperation in the U.S. war effort would make it politically difficult for Bush to impose restrictions on imports. ``This is not a time to end alliances by trade restrictions on steel,'' he said. John Correnti, chief executive officer of Birmingham Steel (NYSE:BIR - news), said it would be hard for Bush to tell countries whose help he needs -- such as Kazakhstan, Ukraine and Turkey -- that they ``can't bring any more steel into this country.'' However, many foreign steel producers unfairly benefit from government subsidies and other practices, he said. Bethlehem Steel Files for Chapter 11 dailynews.yahoo.com NEW YORK (Reuters) - Bethlehem Steel Corp. (NYSE:BS - news), a titan of American industry whose steel helped make the United States a world power in the 20th century, sought bankruptcy protection from creditors on Monday after failing to overcome cheap imports, spiraling costs and a depressed economy. ............................................................................................................................. The third-largest steel producer in the United States fell victim to globalization. Cheaper imports from eastern Europe, Korea and even Japan dragged down Bethlehem, for many years the No. 2 steel producer behind U.S. Steel. The company is now saddled with $4.5 billion in debt, more than its assets of $4.2 billion. ............................................................................................................................... STEEL INDUSTRY WOES Most recently, demand has been hurt by a sharp cutback in auto production, one of the two largest buyers of steel. The slowdown in construction, the other major customer for steel companies, has been another blow to the industry. Analysts are also predicting that more steelmakers will be forced to file for bankruptcy in what has been one of the worst times for the industry. Bethlehem became the 26th U.S. steel company to go into bankruptcy since 1998. ............................................................................................................................... USWA president Leo Gerard said the bankruptcy filing of Bethlehem ``should make it clear beyond all doubt that the government's continued failure to provide relief to the steel industry is destroying an industry that is a cornerstone of America's security''. He pointed out that over 27,000 steel workers have lost jobs since 1998, 14,000 of them this year. ................................................................................................................................. However, some also saw an upside in the filing. Analyst Michelle Galanter Applebaum at Salomon Smith Barney who downgraded the rest of the U.S. steel sector on Monday, said that with a reinvigorated management team and the benefit of Chapter 11 protection it will be able to ``restructure and dramatically lower its cost base, putting still more pressure on its remaining peers, likely pushing steel prices to new lows.'' Steel faces worst downturn in 25 years marketwatch.com By Deborah Adamson, CBS.MarketWatch.com Last Update: 7:22 PM ET Oct. 15, 2001 BETHLEHEM, Pa. (CBS.MW) - The steel industry is facing its toughest challenge in a quarter century ................................................................................................................................ More than a fifth of U.S. steel capacity is in the Chapter 11 reorganization process. In December, LTV Corp. (LTVCQ: news, chart, profile) did likewise in one of the largest bankruptcies among U.S. public companies in 2000. "Steel is passing the bottom of the worst cycle in 25 years," said Aldo Mazzaferro, an analyst with Goldman Sachs in New York, in a report released Monday. "Steel has recently taken a sharp downturn and pricing has been depressed since early last year." .......................................................................................................................... For instance, the AISI said that U.S. price of hot and cold-rolled sheet in August, the latest statistic available, showed a decline of 29 and 24 percent since May of 2000. Global overcapacity of steel is a major problem. Gravatt said that foreign steel companies have been selling steel in the U.S. at below cost - a tactic known as "dumping." In many cases, she said, their governments are subsidizing these companies' losses - in an effort to save local jobs and prop up an industry vital to their economies. .................................................................................................................................. Trade protection of steel in the last 40 years has shielded an industry that needed to restructure and consolidate more to be competitive, according to its president David Phelps. Such protection included import quotas, minimum prices and numerous anti-dumping trade case filings against the offenders. "The bottom line is clear - trade protection does not create competitive industries. Instead, it helps keep the weak companies alive, to the detriment of all," he said in a speech earlier this year at the Economic Strategy Institute.