Opening America's ears to the words being used to describe an essential industry.

The United States steel industry is in a tailspin. Capacity utilization is below 50 percent and production this year is on pace to decline to only 52.2 million short tons, down from 91.5 million tons in 2008. Prices are tanking. For hot-rolled steel in coil, the average cost per ton is $392, a decline of 63 percent from a year ago. Cold-rolled sheet is down to $477 per ton, a decline of 59 percent from the peak last year of $1,153.

At a hearing held in June by the Congressional Steel Caucus, here are the words that were used to describe the state of the U.S. steel industry:

* Scary time;

* Defining moment;

* Grim, grim sight;

* Devastation;

* Layoffs;

* Dire situation;

* Fright;

* Travesty;

* Crisis;

* People in the street; and

* Lowest point in the history of the nation.

The industry is in a world of hurt, according to the 15 people who testified before the House Steel Caucus. With the recent downturn, dozens of steel mills have closed or are idle. More are in danger. The industry is facing a stiff challenge from China, which recently restored a 9 percent export rebate program, and is no longer allowing its currency to float against the dollar.

The U.S. steel industry has lost 50,000 jobs since 2000, which has resulted in the loss of an additional 500,000 American jobs, according to Robert Scott of the Economic Policy Institute. Over the past six months, the industry has lost 15,800 jobs, or almost 16 percent of its workforce. The employment situation will likely get worse. "Firms are usually reluctant to lay off workers in the early stages of a downturn as was the case in the 2000 recession when employment lagged far behind the business cycle," says Scott. "If the current recession of 2008-2009 recovers very slowly, firms within the steel industry and in many other manufacturing sectors are likely to shed large numbers of additional jobs in the future."

The United States is no longer much of a global powerhouse in steel production. The U.S. will account for less than one-tenth of world output this year, and it is a weakling when it comes to exports, ranking in 11th place globally in 2007, when it exported 10.8 million tonnes of steel, as compared to China, which exported six times that amount: 69 million tonnes. In exports, the U.S. ranked behind Taiwan (11.1 million tonnes), Italy (17.9 million tonnes), France (18.1 million tonnes), South Korea (19 million tonnes), Belgium (22 million tonnes), Russia (29.6 million tonnes), Germany (29.9 million tonnes), Ukraine (30.3 million tonnes), Japan (36 million tonnes), and China, leader of the world at 69 million tonnes.

Even though the U.S. has excess capacity, it hasn't stopped a surge of imports, which grew from 21 million tonnes in 2003 to 31 million tons in 2007, the largest amount of imports of any nation in the world. By comparison, China's imports have decreased from 43 million tonnes in 2003 to 17 million tonnes in 2007.

During the Steel Caucus hearing a half a dozen witnesses representing steel workers described the situation in their own facilities.

The Wheeling-Pittsburgh Steel Corp., owned by the Russian company Severstal, has a mill in Steubenville, Ohio. The local United Steel Workers union had 2,500 members in 2000. That is now down to 1,600, and of that number only 160 are currently working. The company's Steubenville and Mingo Junction plants are closed down. Its Coke plant is running at less than half capacity. Another 600 jobs have been lost at its Allenport, Penn., Yorkville and Martins Ferry, Ohio, plants. "These numbers do not include the additional loss of about 200 salaried personnel," says Bernard Ravasio, former USW local president.

Since 2003, workers at the Severstal plants have reduced their wages by 28 percent in order to save their jobs. But it hasn't been enough. "Today we are faced with the realization that our future looks bleak," said Ravasio. "We are challenged to do whatever is necessary in order for our company to survive."

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The Granite City Plant run by the United States Steel was shut down in December 2008 for seven months, and more than 2,000 steelworkers were temporarily laid off. "We have previously experienced downturns in the economy and layoffs, but this is the first time in 130 years of producing quality steel that the complete steel mill was closed," said USW local 1899 president Dan Simmons. "It is a disaster for our families and communities. No American working family should ever have to face this level of personal economic crisis." The plant has been restarted "following a recent surge in orders" says Simmons. On February 10, 2009, 5,000 people marched through the streets of Granite City demanding that Congress pass legislation to preserve U.S. manufacturing jobs. The local union has worked with Granite City and other surrounding city councils and jurisdictions to pass "Buy America" resolutions that require them to use American-made manufactured goods with any money they receive from the federal government's $878-billion Stimulus bill. The city of St. Louis, Mo., also passed a Buy American resolution.

"During the time my members were being laid off and while many of them were losing their health care, we watched train load after train load of 30-inch diameter pipe being unloaded only one mile from the mills," said Simmons. "This was steel pipe being used for an oil pipeline stretching from Alberta, Canada, to a town close to Granite City. This pipe was made in India. There is something truly wrong in our country when thousands of steelworkers are being laid off including 2,000 workers at Granite City, while government subsidized steel pipe made in India is being unloaded in our backyard."

United Steel's Lone Start Steel plant in Texas shut down in December 2008. Steelworkers there have been certified for Trade Adjustment Assistance because they lost their jobs due to steel pipe imports.

Of the 1,000 workers at the ArcelorMittal Weirton plant in Weirton, W.V., 150 have recently been laid off, after 200 employees were permanently fired in 2008. The plant, which employed 10,000 workers in 1983, may not survive the current downturn, according to USW Local 2911 president Mark Glyptis. "Our domestic steel industry is again threatened," he said. "China is a dangerous threat to our nation's economy and our industrial base."

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