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Yes,I’ve had that happen too when i tried to connect a second industry to the seven cities i’m currently supplying.

Demand from the cities has gotten so high,that it was impossible to supply them from only the steel mill. But connecting a refinery to the network,resulted in a severe output drop from the steel mill. So my conclusion is,that it is impossible to connect two industries to a network without having severe production losses from one of them. And even with rising demands from the cities,the production from the industries does not seem to increase at all. In the end,i have to industries that could (but do not) work at full capacity and cities that are constantly under-supplied.