U.S. Steel Corp., the largest U.S.- based steelmaker by sales, is recalling laid-off workers to restart coke production in Ontario and a blast furnace in Illinois, union spokesmen said.

U.S. Steel has called back 100 workers to restart one of two blast furnaces at the company's operations in Granite City, Illinois, Dave Dowling, who represents workers at that site, said in a separate telephone interview. The Illinois plant can produce 2.8 million tons of primary steel a year at full capacity, U.S. Steel said on its Web site.

Granite City is about eight miles northeast of St. Louis.

About 175 workers were assigned to resume output of coke, a steelmaking ingredient, in Hamilton, Ontario, Rolf Gerstenberger, president of the United Steelworkers chapter representing the Canadian workers, said today in a telephone interview.

Another 600 will be recalled "this summer," Gerstenberger said. Rather than an increase in production, he said the company is calling workers back to avoid severance pay. U.S. Steel announced the Canadian layoffs on March 3.

Some analysts have said steel prices may rise as manufacturers rebuild inventories. Pittsburgh-based U.S. Steel said in April that it's using 38 percent of production capacity in its flat-rolled division, the largest of the company's three main units, to adjust to a drought in orders from builders, carmakers and other manufacturers.

The company can produce 2 million tons annually in Hamilton, Gerstenberger said.

Customer Demand

"We are continuing to adjust production across North American operations to stay in line with customer demand and to adjust our workforce as appropriate to our production levels," Erin Dipietro, a U.S. Steel spokeswoman, said in a telephone interview.

The average price of hot-rolled steel sheet in the U.S. has plunged 63 percent to $392 a ton in May from a record $1,068 in July as the slowing global economy reduced demand for automobiles, appliances and homes, Purchasing Magazine said last month.

U.S. Steel fell $2.22, or 5.6 percent, to $37.10 at 4:15 p.m. in New York Stock Exchange composite trading, nearly erasing this year's gain.