Michelle Appelbaum, a managing director and steel analyst for Salomon Smith Barney, talked last week about the industry's prospects.

(I live in Madison, Wis.)" * "A steel analyst in equity research at an investment bank lamented the industry he was covering.

"It's like pouring money into an empty barrel," said Anthony Moon, a steel analyst at HG Asia Ltd.

"A buyback is more positive than negative, and that's about it," said Peter Anker, a steel analyst at the First Boston Corporation.

"The integrated companies just can't afford to do this," John Jacobson, a steel analyst at Wharton Econometrics, said, referring to the new technology.

"They were probably trying to flush out all of Arcelor's issues and objections," said Michelle Applebaum, a steel analyst in Chicago.

"There are no more sacred cows in this industry," an independent steel analyst, Michelle Applebaum, said.

"Even 68 dollars was a surprise, let alone 71," said John Hughes, a steel analyst with Desjardins Securities in Toronto.

"Right now, everyone's feeling the pressures of additional rises in steel prices," said Moon Jung Up, a steel analyst at Daishin Securities.

Arcelor's change of heart comes because "they are feeling the pressure from shareholders," said Michelle Applebaum, an independent steel analyst in Chicago.