[step:Show that Steiner symmetrization does not increase the diameter]
We prove $\operatorname{diam}(\sigma_i(E)) \leq \operatorname{diam}(E)$.
Let $(x', s), (y', t) \in \sigma_i(E)$. By definition, $|s| < \mathcal{L}^1(E_{x'})/2$ and $|t| < \mathcal{L}^1(E_{y'})/2$. We must show
\begin{align*}
|(x', s) - (y', t)|^2 = |x' - y'|^2 + (s - t)^2 \leq (\operatorname{diam}(E))^2.
\end{align*}
Since $|s| < \mathcal{L}^1(E_{x'})/2$, there exist points $a, b \in E_{x'}$ with $a < s < b$ and $b - a = \mathcal{L}^1(E_{x'})$ (we may assume the fiber has this full extent; more precisely, since $|s| < \mathcal{L}^1(E_{x'})/2$, there exist $a_1, b_1 \in E_{x'}$ with $a_1 \leq -|s|$ and $b_1 \geq |s|$, because the fiber has total length $\mathcal{L}^1(E_{x'}) > 2|s|$ and must therefore extend at least $|s|$ on both sides of the origin --- this uses that the symmetric interval $(-\mathcal{L}^1(E_{x'})/2, \mathcal{L}^1(E_{x'})/2)$ has the same length as $E_{x'}$).
More carefully: since $E_{x'}$ has $\mathcal{L}^1(E_{x'}) > 2|s|$, there exist $a_1 \in E_{x'}$ with $a_1 \leq s$ and $b_1 \in E_{x'}$ with $b_1 \geq s$ (taking any point of $E_{x'}$ below or above $s$ in the sense of Lebesgue measure distribution). Similarly, there exist $a_2 \in E_{y'}$ with $a_2 \leq t$ and $b_2 \in E_{y'}$ with $b_2 \geq t$.
[claim:The key distance bound]
For $s, t \in \mathbb{R}$ and intervals with points $a_1 \leq s$, $b_1 \geq s$, $a_2 \leq t$, $b_2 \geq t$, we have
\begin{align*}
(s - t)^2 \leq \max\{(b_1 - a_2)^2, (b_2 - a_1)^2\}.
\end{align*}
[/claim]
[proof]
If $s \geq t$, then $s - t \leq b_1 - a_2$ (since $s \leq b_1$ and $t \geq a_2$), so $(s - t)^2 \leq (b_1 - a_2)^2$. If $s < t$, then $t - s \leq b_2 - a_1$, so $(s - t)^2 = (t - s)^2 \leq (b_2 - a_1)^2$.
[/proof]
Therefore, using that $(x', a_1), (x', b_1), (y', a_2), (y', b_2) \in E$:
\begin{align*}
|x' - y'|^2 + (s - t)^2 &\leq |x' - y'|^2 + \max\{(b_1 - a_2)^2, (b_2 - a_1)^2\} \\
&= \max\{|(x', b_1) - (y', a_2)|^2, |(y', b_2) - (x', a_1)|^2\} \\
&\leq (\operatorname{diam}(E))^2,
\end{align*}
since all four points $(x', a_1), (x', b_1), (y', a_2), (y', b_2)$ lie in $E$. Taking the supremum over all $(x', s), (y', t) \in \sigma_i(E)$ gives $\operatorname{diam}(\sigma_i(E)) \leq \operatorname{diam}(E)$.
[/step]