I read this article about European steel. Unfortunately, the recession is negatively affecting several industries. Because of the decrease in the production of new cars, the demand for steel has greatly decreased. Cash for Clunkers was a weak attempt to increase car sales in hopes that the other industries connected to the car industry, including the steel industry, would be stimulated as well as the auto industry. This may have worked on a small scale, but once the program was no longer available the car industry, as well as the industries connected to the car industry, returned to their depressed state.
The article goes on to discuss how some steel companies are considering starting anti-trust procedures against other steel companies because they were supposedly acting in cartels. The recession has encouraged the steel company to go on a witch hunt. They are desperate to decrease competition in an attempt to gain market share and rebound from economic strife.
Once the economy rebounds, the car and steel industry will rebound as well. As the article mentions, a rebound will take time. Until then auto and steel makers will have to be innovative to cut costs and gain market share.