Steel Products Manufacturers NAICS 3312

Jun 21, 2026 - Data Centers Driving Steel Demand

• The rapid expansion of AI-driven data centers is creating strong demand for a wide range of steel products, according to a recent blog post in Metols. A single data center campus can consume 15,000 to 30,000 tons of steel, making data centers one of the fastest-growing end markets for steel distributors and manufacturers. Products seeing particularly strong demand include heavy structural steel shapes such as W14 and W12 columns, steel decking, carbon steel pipe used in cooling systems, and other structural and mechanical steel products. Data centers also require steel for server racks, enclosures, power infrastructure, HVAC systems, and piping networks. With data center construction projected to grow 25% to 35% annually through at least 2030, steel products manufacturers serving structural construction, mechanical systems, and industrial infrastructure markets are positioned to benefit from sustained demand growth driven by investments in AI and cloud computing.
• The April update to Section 232 tariff rules creates mixed cost and strategic impacts for US manufacturers that rely on imported steel, Politico reports. While 50% tariffs remain on many primary metals, including steel, the shift to applying duties on the full value of imports can increase total costs for some manufacturers, especially those using steel-intensive inputs. At the same time, lower tariff tiers on certain downstream and specialized products provide partial cost relief for select goods. Exemptions for low-metal-content items also reduce costs in limited cases. However, the administration’s policy increases uncertainty and reduces flexibility by eliminating the prior process for requesting tariff changes, making it harder for manufacturers to seek relief. Overall, domestic steel product manufacturers that depend on foreign steel face continued cost pressure, more complex tariff exposure, and less ability to influence policy, requiring careful supply chain and pricing adjustments.

• The Iran war and effective closure of the Strait of Hormuz are disrupting global metals supply chains, according to analysts at Wood Mackenzie. The region is a key supplier of aluminum and steel inputs, and disruptions to ports and shipping routes are tightening supply and raising market risk for manufacturers that purchase metals. Aluminum markets were already projected to face a deficit, and interruptions to exports from Gulf producers could further tighten supply and push prices higher. The most immediate impact is on steel markets. Iran typically exports about 4 million tons of finished steel and 7–8 million tons of semi-finished products annually, roughly 11% of global semi-finished steel trade. With ports disrupted, this supply has effectively disappeared, causing billet prices to surge as buyers seek alternative sources. For manufacturers that rely on steel and metal inputs, the conflict increases the likelihood of higher raw material costs, shipping delays, and supply volatility.
• Producer prices for steel product manufacturers from purchased steel rose 7.1% in May compared to a year ago, after rising 1.7% in the previous May-versus-May annual comparison, according to the latest US Bureau of Labor Statistics data. High tariffs on imported steel (50%) and supply constraints are raising input costs for makers of steel products and driving up producer prices. Industry employment shrank 2.1% year over year in April, while the average industry wage at primary metals manufacturers rose 2.5% YoY in May to $30.18 per hour, easing from its high in April, BLS data shows.