Iron & Steel Mills

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 260 iron and steel producers in the US process iron ore, scrap metal, and other raw materials into semi-finished steel products. Products include iron ore, steel sheets (cold or hot rolled), strips, bars, plates, pilings, and rails. Major customers include fabricators, manufacturers, intermediate steel processors, and service centers that convert semi-finished steel into finished goods. Some companies are vertically integrated and may own facilities to produce raw materials and/or finished steel products.

Competition From Imports

Imports account for almost 25% of the US iron and steel market.

Competition From Alternative Materials

Depending on the end use, steel products compete with goods made from concrete, aluminum, plastics, wood, and composites.

Industry size & Structure
Industry Forecast
Iron & Steel Mills Industry Growth
Source: Vertical IQ and Inforum

Recent Developments

Jan 23, 2024 - Producer Prices Declined in 2023
  • Producer prices for iron and steel mills fell 2.2% in 2023, more than giving up first-half gains in the second half of the year, according to the US Bureau of Labor Statistics. Overall employment by iron and steel mills declined in November year over year while average industry wages at primary metals manufacturers continued their steady climb, peaking at $29.17 per hour in December, up 7.0% compared to a year ago, BLS data show. Sales for the US iron and steel mills industry are forecast to grow at a 2.61% compounded annual rate from 2023 to 2027, slower than the growth of the overall economy, according to the Interindustry Economic Research Fund.
  • The Committee on Foreign Investment in the US (CFIUS) is in the early stages of reviewing the deal to sell US Steel to Japan’s Nippon Steel, Fortune reported in January. CFIUS is a US Treasury-led interagency panel that has the power to recommend the president block deals if they pose a threat to national security. Coming in an election year, the sale of an iconic US industrial company to a foreign operator has political and policy implications for the Biden administration, which has sought to expand the definition of national security to include safeguarding the economy. The United Steelworkers union opposes the sale, saying it will cost members jobs. Short of blocking the deal, the administration could require the steel companies to agree to certain terms, including that the merged entity maintain steel-production capacity or protect manufacturing techniques, according to The Wall Street Journal.
  • Pollution-intensive industries are pushing back against the Biden administration’s attempt to tighten air quality standards saying the cost of clean air is too high relative to its health benefits, The New York Times reported in November. An October letter to The White House signed by the American Iron and Steel Institute, Steel Manufacturers Association, and a broad coalition of industries and manufacturers warned that under the new regulations governing soot being considered by the EPA, “no room would be left for new economic development” in many areas if the agency went ahead with a standard as tough as it was contemplating, endangering the manufacturing recovery. The EPA estimates the potential benefits at as much as $55 billion by 2032 if it drops the limit to nine micrograms per cubic meter, from the current 12 micrograms – far more than the $500 million it estimates the proposal would cost.
  • The Internal Revenue Service has issued guidance that offers a first glimpse at how the agency will determine which renewable energy projects qualify for the 10% domestic content tax credit rider created by the Inflation Reduction Act (IRA), Utility Dive reports. Domestic content is generally defined as steel, iron, or manufactured products manufactured or produced domestically. The IRA, which aims to boost clean energy and reduce greenhouse gases, contains two tiers of domestic content requirements — one for steel and iron components and one for manufactured products. The notice begins to define how individual project components fall into each category. Under the IRA, renewable energy projects must incorporate 100% US-made iron and steel to qualify for the domestic content tax credit. Steel and iron parts inside “manufactured products” don’t need to be made in the US to qualify, according to the guidance.
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