Companies in this industry engage in converting pig iron to steel, making steel, and manufacturing steel shapes, pipes, and tubes. Major companies include Nucor and United States Steel (both of the US), as well as ArcelorMittal (Luxembourg); China Baowu Steel Group and HBIS Group (both of China); JFE and Nippon Steel & Sumitomo Metal (both of Japan), POSCO (South Korea), Tata Steel (India), and ThyssenKrupp (Germany).
The global steel industry produces about 1,700 million metric tons of steel per year, according to WorldSteel. China is by far the largest steel maker. China produces more steel than the next six largest steel making countries combined, and accounts for about half of global steel production. Other top steel producers include Japan, the US, India, South Korea, Russia, and Germany.
The US steel production industry includes about 250 companies with combined annual revenue of about $80 billion.
Demand comes largely from manufacturers of durable goods such as motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends on efficient operations, because most products are commodities sold based on price. Big companies enjoy significant economies of scale in production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by serving regional markets or producing specialty products. The US industry is highly concentrated: the 50 largest companies generate 95% of revenue.
Steel imports make up nearly 35% of the US market. Canada, Brazil, South Korea, Russia, and Mexico are top suppliers. Exports, mainly to Canada, Mexico, and China, account for about 15% of US production.
Products, Operations & Technology
Major products include steel and steel shapes (bar, plate, rod, sheet, strip, and wire), as well as steel pipe and tube. Other activities include reduction
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms