NEW YORK, March 6 (UPI) -- U.S. stock indexes slid lower in midmorning Thursday trading as the U.S. dollar fell to a record low against the euro.

The euro hit $1.5348 Thursday morning, pushing a continued run on oil and other commodities with oil reaching a record $105.34 per barrel on the New York Mercantile Exchange.

The Dow Jones industrial average lost 60.00 points to 12,124.99, off 0.04 percent. The Standard & Poor's 500 index dropped 9.33 points to 1,324.37, down 0.7 percent. The Nasdaq composite index fell 0.2 percent to 2,268.17, down 4.64 points.

The 10-year treasury note gained 9/32 to yield 3.649 percent.

The euro traded at $1.5348 Thursday from $1.5265 Wednesday, while the dollar traded at 103.34 yen from 103.957 yen Wednesday.

In Tokyo, the Nikkei average gained 243.36 points Thursday to close at 13,215.42, up 1.8 percent.

Report: Steel growth to slow in China

BEIJING, March 6 (UPI) -- Steel production increases in China are expected to slow in 2008 in part due to 344 plants shuttered for environmental and efficiency concerns, Xinhua said.

But, Qi Xiangdong, director of the China Iron and Steel Association, said the major reason for the reduced growth was the rising price of iron ore.

Crude steel output would grow between 6.3 percent and 10.4 percent for the year, Qi said, compared with 15.66 percent growth in 2007. Rolled steel output was expected to grow 7 percent to 12.3 percent, a decline from the 2007 growth rate of 22.69 percent.

Prices for iron ore rose 18.62 percent in 2004. Ore rose 71.5 percent in 2005 and 19 percent in 2006, Xinhua reported.

China has also reduced its iron smelting capacity by 29.4 million tons and its steel smelting capacity by 12.21 million tons in efforts to modernize plants and reduce pollution, the state-run news agency said.

"On one hand, the outdated production capacity has been eliminated. On the other hand, the newly-developed capacity has not been fully put into use, leaving a temporary gap between demand and supply," Qi said.

U.S. Postal Service to lose $1 billion

WASHINGTON, March 6 (UPI) -- U.S. Postmaster General John Potter told a U.S. Senate subcommittee the postal service is on line to lose $1 billion in 2008 due to decreasing business.

"We would never be able to dig out of that hole," Potter told senators Wednesday.

The postal service is threatened by a drop off in first-class mail -- from 98 billion pieces in 2004 to 96 billion in 2007 -- and by increased pressure from states, 18 of which have introduced bills to allow residents to opt out of receiving junk mail.

"We threw out the equivalent of a grocery bag of unwanted mail each day," Maryland Del. Karen S. Montgomery, D-Brookeville, told The Washington Post.

Montgomery introduced a "do not mail" bill in Maryland but withdrew it under pressure from lobbyists, the report said.

The U.S. Postal Service can only raise letter rates to coincide with inflation but it can raise package rates to stay abreast of competitors.

But, Potter asked senators to consider allowing the postal service to rent out space to retailers.

"Other countries ... look at their assets and use those assets to generate revenue," Potter said. "That type of flexibility is something I think we need to explore."

Buffet world's richest man

NEW YORK, March 6 (UPI) -- Investor Warren Buffet, worth an estimated $62 billion, has overtaken Bill Gates as the richest man on Earth, Forbes magazine reported Wednesday.

Gates, the Microsoft co-founder who held sway atop the wealth list for 13 years, slipped to No. 3 behind Buffet and Mexican telecommunications businessman Carlos Slim Helu, whose wealth has doubled in just two years, Forbes said. Helu is estimated to have a net worth of $60 billion, while Gates is now said to be worth $58 billion.

Buffet, 77, saw his fortune pile up another $10 billion in the past year, thanks to the increased value of Berkshire Hathaway (NYSE:BRK-A) stock. He had no comment on his financial status, Forbes reported.

Gates might still have ruled the roost had Microsoft not made a bid for Yahoo! last month, which triggered a 15 percent drop Microsoft's value.