Steel Products Manufacturers NAICS 3312

Jan 21, 2026 - Steel Supply Chain Consolidation

• Consolidation among steel mills and service centers, combined with 50% Section 232 tariffs, is reshaping the steel supply chain, The Fabricator reports. Mergers such as Ryerson–Olympic Steel concentrate distribution power, reducing the number of outlets manufacturers rely on for specialty grades, mixed loads, and quick‑turn inventory. As large service centers grow, smaller and mid‑sized steel product producers risk receiving less attention, fewer flexible financing options, and reduced access to spot inventory that historically helped them manage volatility. Stiff tariffs have tightened domestic supply by sharply reducing imports, pushing more buyers into an already consolidated market. With less competition, service centers can hold inventory longer, raise prices more quickly, and negotiate less aggressively. For steel product manufacturers, who depend on predictable input costs, this means higher prices, slower price declines, longer lead times, and diminished leverage.
• Steel supplier Nifty Alloys’ Steel Price Trends Forecast for 2026 predicts buyers will face a market defined by structurally higher costs, steady demand, and continued volatility, all of which shape pricing power, production planning, and capital allocation by steel producers and purchasers. The elevated steel price floor set in 2025, driven by expensive raw materials, high energy costs, and strong construction activity, is expected to persist, meaning steel buyers will face an environment where input inflation remains sticky. Demand from construction, infrastructure, oil and gas, and industrial fabrication is expected to stay strong, supporting mill utilization and firm pricing. The growing shift toward higher‑grade, low‑carbon, and specialty steels also benefits producers capable of supplying premium alloys. At the same time, environmental regulations and the push for “green steel” raise production costs but create opportunities for manufacturers investing in cleaner technologies, while likely raising prices for their customers.

• China’s decision to impose export controls on roughly 300 categories of steel products starting January 1, 2026 will reshape global steel flows and directly affect US steel product manufacturers, The Wall Street Journal reports. Exporters in China will now need government permission to ship items such as billet, hot‑rolled coil, stainless steel, bar, and pipe, all materials that have contributed to China’s record‑high steel exports in 2025, according to Bloomberg. For US makers of steel products, China’s move to curb the outflow of steel and steel products would likely result in less downward price pressure from low‑cost Chinese steel, improving domestic pricing power. However, US manufacturers that rely on imported semi‑finished or specialty Chinese steel could see tighter supplies and rising costs. China’s exports of steel products are on track to hit a record in 2025, according to WSJ.
• Producer prices for steel product manufacturers from purchased steel rose 5.8% in September compared to a year ago, after falling 7.1% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for makers of steel products have tumbled 25% from their peak in May 2022, when strong demand from key customer industries drove prices to new heights. More recently, prices have risen by 7.4% since January 2025. Industry employment grew 1% year over year in August, while average industry wages at primary metals manufacturers rose 1.4% YoY in September to $29.62 per hour, down about $0.40 from its high in July, BLS data shows.