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 487 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%.
Economically Sensitive Customer Base
Demand for steel products depends on the health of customer industries, many of which are cyclical and vulnerable to economic conditions.
Competition from Alternative Materials
Depending on the application, steel may compete with a variety of alternative materials.
Industry size & Structure
Steel products manufacturers generally operate out of a single location, employ about 100 workers, and generate $65.5 million annually.
- The steel products manufacturing industry consists of 487 companies that employ about 54,100 workers and generate $31.9 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 Liberty Steel & Wire.
Industry Forecast
Steel Products Manufacturers Industry Growth
Recent Developments
Feb 21, 2024 - Producer Prices Extend Decline in 2023
- The producer price index for steel products manufacturers fell for the second consecutive year in 2023 reversing a steep rise that kicked off in 2020. Producer prices fell about 8.5% in December compared to a year ago after falling 12.3% in the previous annual comparison, according to the US Bureau of Labor Statistics. The industry’s pricing power declined amid rising labor costs with overall employment by steel products manufacturers up 5.7% in December year over year and average wages at primary metals manufacturers reaching a new high of $29.09 per hour in December, up 6.7% compared to a year ago, according to the BLS.
- US steel imports fell in 2023, according to preliminary US Census Bureau data. Total and finished steel imports were 28,156,000 and 21,694,000 net tons (NT) last year, down 8.7% and 14.1%, respectively, compared to 2022, per the USCB. The finished steel import market share was estimated at 21% for 2023, the American Iron and Steel (AISI) reported in January. Steel products with a significant increase in imports for 2023 vs. 2022 included cut lengths plates (up 20%) and ingots, billets and slabs (up 16%). In 2023, the largest suppliers of steel to the US were Canada (6,885,000 NT, unchanged vs. 2022), Mexico (4,184,000 NT, down 21%), and Brazil (3,942,000 NT, up 54%). Imports from Japan fell 6%, per AISI.
- The steel industry’s reaction to the Clean Competition Act (CCA) reintroduced in Congress in December is mixed, according to an American Iron and Steel Institute (AISI) press release. The legislation aims to reduce industrial climate pollution while strengthening the competitiveness of clean US manufacturing through new incentives. While AISI welcomes the bill’s proposed system of carbon intensity-based tariffs on higher-emitting imports, it strongly opposes a proposed tax on domestic carbon emissions. “This provision penalizes domestic producers who are making great strides towards decarbonization and would deprive domestic steel producers of the very capital needed to continue investing billions of dollars in decarbonization and innovation in the United States,” per the AISI release. The act would impose a carbon border adjustment on energy-intensive imports, including iron and steel, beginning in 2025. In 2027, it would expand to include imported finished goods that meet certain weight or value thresholds, such as cars.
- The steel industry is cleaning up its act, The New York Times reports. The outlook for the industry, which is responsible for about 7% of global carbon emissions, has changed significantly, according to NYT, noting that electric arc furnaces (EAF), which use scrap metal and electric current instead of iron ore and coke, are on the rise globally. Some 43% of planned steel plants will use EAFs, up from 33% just a year ago, according to a recent study by Global Energy Monitor cited by NYT. Notably, US Steel recently broke ground on a $3 billion mill in Arkansas that will feature two new EAFs. More than 70% of American steel is now produced using EAFs, a number that’s poised to grow because of government subsidies, including the Inflation Reduction Act. Steel also has a major part to play in building clean energy infrastructure.
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