COLUMBUS, Ohio -- Ohio's steel industry experienced a double-digit rebound in production and shipping last year, but those gains were also undermined by high supply costs that affected earnings.So says the Ohio Steel Council's final data report for 2003, issued April 8. The report cited demand for steel was on the rise while order books at many companies were full, particularly in the fourth quarter of last year."Ohio steel makers made significant progress in 2003, buoyed by stronger demand in the fourth quarter," says Bill Brake, International Steel Group general manager and senior vice president, and a member of the Ohio Steel Council. "The past year truly reflects how Ohio steel producers are poised to compete in the global marketplace. However, a continued emphasis on product quality and reinvestment in Ohio facilities is necessary to maintain this wave of positive momentum."An increase in demand for steel, both domestically and on a global scale, played a key role in the production and shipping increase. For example, export shipments from Ohio steel producers to foreign companies jumped 123.5% in 2003.According to the report, steel production increased 22.4% in 2003, from 10.7 million tons in 2002 to 13.1 million tons. For the quarter, steel production rose 52.6%, to 3.5 million tons.Steel shipments in 2003 increased 24.5% to 14.1 million tons from 11.3 million tons in 2002. Fourth-quarter steel shipments jumped 63.4% to nearly 4 million tons.However, last year the state's steel producers felt the impact of high energy and coke prices, which dampened earnings despite stronger production and shipment numbers.Year-end figures show that Ohio steel producers spent $400 million on natural gas in 2003 -- an increase of more than 48% over 2002 -- and nearly $190 million on coke last year -- a 64% increase from year-ago figures. Coke is used as fuel in blast furnaces.The report also notes employment at Ohio's top steel-producing companies grew nearly 4% to 16,021 in 2003. This hike can be attributed to the stronger order books and several acquisitions completed during the past year.Steel producers continued to invest heavily in their Ohio facilities in 2003, the council reports. Capital investment increased 50.6% to $144.1 million last year, the year-end report shows. "