The economic impact of water pollution abatement in the steel industry was measured by deriving data to determine the following: The cost to steel firms of installing effluent treatment facilities; the per unit cost increase due to pollution abatement firms will pass on to industrial users; shifts in purchasing by steel users due to the resulting increased price; and the per unit price increase due to pollution abatement industrial users will pass on to ultimate consumers. The economic analysis of the industry has shown that the combination of expenditures for water pollution abatement, air pollution abatement, installation of new technology and capacity, servicing of debt load, and paying for rising production factor costs will combine to create a considerable strain on the financial resources of iron and steel producers in years to come.