An engineering-economic computer simulation model was constructed as a framework to explore the impact of major technology and policy variables on the future development of the domestic steel industry. Issues of future demand, capacity costs, steelmaking technology mix, environmental standards and costs, corporate earnings and profitability, and steel imports were identified and examined in a review of recent reports. The computer simulation model illustrates the interactions between these future uncertainties and tests the sensitivity of future forecasts concerning the U.S. steel industry to variations in these factors. The simulation model contains six major sections: steel demand, production processes and scrap flows, production capacity, capital expenditures, financial analysis, and operating costs and prices. A detailed list of assumptions used as inputs to the model are presented.