5- STEEL Iron ore and coking coal follow closely the fortunes of the steel industry but the fluctuations are more violent in these raw materials than in finished steel production. When steel output is falling, the mills live off inventory and the mines take the biggest brunt of the downturn. Conversely, when steel production is on the increase the mining rate is accelerated in order to provide for an inventory buildup. In 1958 our domestic ore production was off over 50%, but recovery began toward the end of the year and production has increased rapidly to new high levels, although the threat of a steel strike is undoubtedly an important factor. Foreign ore production tends to fluctuate more in price but less in volume than U. S. production. Foreign ores move in a world market and the timing of the recession in the steel industry differed. The U.S. was hit earlier and sharper and has recovered more quickly. The downturn in Germany came later, was less severe, but has not yet shown any signs of substantial recovery. The same is true for Japan. The fluctuations