Baosteel was the first steel producer to announce the closure of a mill while others have kept mills operating at low capacity, buoyed by loans and subsidies from local governments that want to avoid losing jobs.

FORBES: Baosteel Closes Shanghai Factory

Swanson Group has increased its mill production in the region to three-quarters of capacity from one-quarter in 2009, said Steve Swanson, president and chief executive.

WSJ: Logging Towns Are on a Roll

Given the high fixed cost base related to operating a steel mill, margins will also decline if a plant is not operated at optimal capacity.

FORBES: ArcelorMittal Still Good For $22 Even With Lower Guidance

Four years from the time Todd built the mill, Memphis is producing at only half of its 900, 000 tons of annual capacity.

FORBES: Iron Wills