Down, but not out.

Steelmakers in North America are doing their part to keep global capacity limited, though in some cases the capacity may just be relocating.

Among the moves making news in early 2004 have been an arrangement to move Geneva Steel equipment in Utah to China and the permanent shutdown of Slater Steel mills in Canada and the U.S.

The Deseret News of Salt Lake City reports that Qingdao Iron and Steel Group has offered $35 million to creditors for the former Geneva Steel's assets in Vineland, Utah, with the intention of shipping the slab caster, rolling mill and finishing line to China.

A Salt Lake Tribune editorial comments, "That the guts of Geneva's mill could go to Qingdao Iron and Steel may be the most potent symbol in Utah of China's rise as an industrial power. In fact, the downward pressure on wages is so intense that many American-owned manufacturing firms are compelled to move their operations to China or face extinction."

That pressure has resulted in Slater Steel Inc., Toronto, asking to liquidate operations in Ontario and Quebec and to shut down as a corporate entity. Slater previously shut down mills in Welland, Ontario, and in Fort Wayne, Ind.

Global steelmakers continue to allocate capital to China, with Europe's Arcelor and the Nippon Steel Corp. of Japan signing a joint venture with China's Bao Steel to build a 1.7 million-tons-per-year mill in Shanghai to produce rolled carbon steel.

Also, North Star Steel finalized the sale of its Monroe. Mich., mill to Quanex Corp., Houston. which will re-brand the mill as part of its MacSteel division.