Time for a Grand Bargain in Steel

Everyone agrees that the US steel industry is distressed. The disagreement is over the role of imports: to what extent is foreign steel the culprit? Before turning to this critical issue, it is worth recounting the highlights of the steel industry's difficulties. In the past four years, 29 US steel companies have entered into bankruptcy proceedings (21 since the 2000 presidential election). Table 1 lists the companies that have filed for bankruptcy and their current operating status. Many are still operating, although some have closed and a few have emerged from bankruptcy. Bethlehem Steel and LTV are the two largest companies that filed for bankruptcy. Together, these two companies represent about half of the steel-making capacity and jobs embroiled in bankruptcy filings.