The United Steelworkers union said Monday it had broken off contract talks with ArcelorMittal USA Inc., Chicago, though industry sources said they don't believe the break in talks will result in a strike.

"After 12 weeks of attempting to negotiate a fair contract with ArcelorMittal on behalf of our more than 14,000 members and our tens of thousands of retirees, the lack of recent progress has led to our decision to recess negotiations," a USW representative said in a statement.

Nicholas Tolerico, independent steel industry consultant, said the recess could be a posturing move.

"Sept. 1 is a long time from now," he said. "That's like forever. I think it's all part of the negotiations. They all are indicating they have firm positions and it's going to be tough talks."

Another steel industry source said he also doesn't see a strike happening because the USW doesn't want to give up any money.

"With profit sharing being such a large part of the union members' pay, if they go on strike and walk away from (a) profit-sharing check for the quarter, that's $5,000 they'll never get back," he said.

The USW had received a response on a...