Steel Fights Back

Since 1982, the American steel industry has been struggling back, haltingly, from near disaster. With the industry beset by shrunken markets, intense foreign competition, technological change, large indebtedness and heavy financial losses, doubts were expressed in 1982 and 1983 as to whether survival would be possible without massive government aid, perhaps nationalization, a course that has been followed in several foreign countries. Drastic measures to cut costs, including retirement of obsolescent plants, large reductions in staff and divestiture of money-losing subsidiaries, together with a revival in shipments, restored several producers to profitability in the first half of 1984, but most dropped back into the red as imports surged in the second half of the year.