Lessons Learned? The Steel Industry Hopes So

The State Journal: After a strong third quarter that saw steel-sector companies posting big numbers, fallout from a financial crisis that started in the nation's sub-prime lending market torpedoed the global economy, causing demand for big-ticket items, such as cars, appliances and new construction to plummet.

With demand waning, so have orders. And with fewer orders coming in, steel producers are cutting back: Last week, Steel of West Virginia laid off 52 workers at its Huntington plant until the economy picks up, while AK Steel temporarily idled most operations and hundreds of workers at its plant in Ashland, Ky.

Russian steel giant Severstal, meanwhile, also made changes, keeping furnaces at its Wheeling operation offline and using voluntary layoffs to control costs until the economy recovers.

And while Luxembourg-based ArcelorMittal, the world's largest steelmaker, announced a 30 percent scale-back in operations worldwide, the bright spot in an otherwise gloomy picture is that workers at the company's Weirton plant will not face additional layoffs, voluntary or not, because its product line -- tin plate, used in food packaging -- historically is a big seller when consumers are anxious.

"Tin plate historically does well during a down economy, and this period does not seem to be an exception," ArcelorMittal spokesman Adam Warrington said.