Steel Products Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 560 steel products manufacturers in the US produce iron and steel tubes, pipes, wires, and shapes from purchased iron or steel. Companies that specialize in pipes and tubes account for 52% of total industry revenue; rolled steel shape manufacturers account for 24% and steel wire manufacturers account for 24%.
Competition From Alternative Materials
Depending on the application, steel may compete with a variety of alternative materials.
Variable Raw Materials Costs
The cost of steel is highly variable and steel accounts for a significant percentage of product costs.
Industry size & Structure
Steel products manufacturers generally operate out of a single location, employ 97 workers, and generate $49 million annually.
- The steel products manufacturing industry consists of 560 companies that employ about 54,600 workers and generate $27 billion annually.
- Companies that specialize in pipes and tubes account for 52% of total industry revenue; rolled steel shape manufacturers account for 24% and steel wire manufacturers account for 24%.
- The industry is concentrated with the top 50 companies accounting for 62% of sales.
- Some large steel producers are vertically integrated and own and operate downstream processing facilities that manufacture finished steel products.
- Large companies include Precision Castparts, McWane, California Steel Industries, and Keystone Steel & Wire.
Industry Forecast
Steel Products Manufacturers Industry Growth
Coronavirus Update
Apr 29, 2022 - White House Announces Guidance for Buy America Act
- The Biden Administration in mid-April 2022 released initial guidance to federal agencies implementing the Build America, Buy America Act to ensure that all federally funded infrastructure and public works projects use iron, steel, and other products that are made in America. The iron and steel industry applauded the administration’s announcement as an important first step toward ensuring the fullest possible implementation and enforcement of Buy America domestic procurement preferences by all federal agencies. The American Steel Institute (ASI) has estimated that every $100 billion of new investment in infrastructure could increase demand for domestic steel by as much as 5 million tons.
- The volume of US steel imports in the first quarter of 2022 jumped 33.8% year over year and totaled 2,804,809 metric tons (mt), according to US Census Bureau figures. Top sources for US steel imports in March included Canada, Mexico, and Brazil. According to the American Iron and Steel Institute, the US steel import market share in March was estimated at 26%, compared to 22% in February and 24% year to date.
- The value of iron and mill shipments grew 23.5% in February 2022 from a year ago, according to the Federal Reserve.
- Total construction starts, a driver of demand for steel products, increased 9% in the first quarter of 2022 compared to the first quarter of 2021, according to Dodge Data & Analytics. Nonresidential building starts jumped 26% while residential starts rose 3%. Construction starts are forecast to increase 6% in 2022. However, continued increases in material prices and labor shortages could restrain the construction industry’s ability to fully capitalize on both the large number of projects in planning and funding resulting from the federal infrastructure package.
- Steel products manufacturers that specialize in pipes and tubes, which account for 52% of total steel products manufacturing industry revenue, may benefit if oil prices remain high. Oil prices that rallied 50% in 2021 have continued to increase in 2022. Global supply issues resulting from sanctions and bans on Russian oil drove prices over $123 per barrel in early March 2022. Some analysts cite a lack of US production capacity and limited investment in the sector as factors that could sustain elevated crude prices. However, high prices and limited supply tend to push oil companies to increase production.
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