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 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 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.

Customer Industries Vulnerable to Economy

Demand for steel products depends on the health of customer industries, many of which can be cyclical and vulnerable to economic conditions.

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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 6, 2023 - Rising Global Demand for Oil
                              • Global demand for oil is expected to increase this year driven by stronger-than-expected economic growth in the US, Europe and China’s reopening, The Wall Street Journal reports. In its February monthly report the Organization of the Petroleum Exporting Countries (OPEC) increased its prediction for global oil demand growth this year by 100,000 barrels a day. The cartel raised its prediction for global economic growth in 2023 to 2.6%, from a previous forecast of 2.5% citing strong consumer spending and signs that inflation is easing. OPEC also raised its 2023 China growth forecast to 5.2% from 4.8%. Suppliers of steel pipe, tube, and other products to the energy sector are likely to benefit from increasing US oil production in response to rising global demand.
                              • The US imported a total of 2,607,000 net tons (NT) of steel in January 2023, including 2,000,000 NT of finished steel (up 18.3% and 7.3%, respectively), vs December 2022, according to preliminary US Census Bureau data released in February. Total and finished steel imports were down 14.4% and 12.2%, respectively, vs January 2022. Over the 12-month period February 2022 to January 2023, total and finished steel imports declined 5.2% and up 5.0%, respectively, vs the prior 12-month period. Finished steel import market share was an estimated 24% in January 2023. Key finished steel products with a significant import increase January compared to December were heavy structural shapes (up 99%), cut lengths plates (up 83%), ingots and billets and slabs (up 79%), sheets and strip all other metallic coatings (up 55%) and mechanical tubing (up 36%).
                              • Analysts are forecasting further declines in steel plate prices early this year, but the outlook for the rest of 2023 remains uncertain, according to steel plate products maker Leeco Steel. An analysis by the World Steel Association expects high inflation and rising interest rates to negatively affect steel demand this year, offset by federally-funded infrastructure projects, which should help to boost demand. Legislation supporting infrastructure projects is expected to impact steel demand over the next several years as funds are dispersed for new projects. The Inflation Reduction Act is expected to boost demand for steel products used in energy infrastructure. The 2021 Infrastructure Bill has already supported 29,000 new projects related to highways and bridges, and the number will rise as funds are allocated, resulting in greater demand for steel products used in road and bridge infrastructure, according to Leeco.
                              • The steel industry stands to benefit from important water infrastructure projects funded by the Water Resources Development Act (WRDA) that passed in late 2022. The bill, authorized by Congress every two years to fund Army Corps of Engineer waterways projects, includes funding for navigation and inland waterway construction, areas of particular concern to steel makers and end users in the market. “In addition to authorizing 25 new water projects, the bill is critical to the ongoing modernization of the Soo Locks in Michigan — through which nearly all of the iron ore used for American steel production is shipped,” said American Iron and Steel Institute CEO Kevin Dempsey. Overall, the WDRA will authorize over $37 billion in funds for inland waterways projects, a lifeline for transporting raw materials to steel mills for manufacturing steel products.
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