Nerves of steel: Stronger downstream demand and rebounding steel prices will revive revenue

The Iron and Steel Manufacturing industry in California has experienced challenging operating conditions over the past five years due to falling steel prices and deteriorating demand from certain industrial markets. Moving forward, the industry will likely benefit from stronger downstream demand and rallying steel prices over the next five years. Rising consumer spending and business investment will help manufacturing and nonresidential construction industries to grow, bolstering sales of steel products to the industry's two leading regional markets. However, global economic conditions and overcapacity will continue to play a key role in determining regional selling prices for steel products...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-3.7%
Forecast Growth 17-22
Profit
Employment
2,254
Businesses
43
What Our Customers Say

Industry Threats & Opportunities

  • Rebounding steel prices and rising construction activity are expected to revitalize demand
  • Rising price-based competition forced the industry's largest operators to reduce prices
  • The nonresidential construction sector has historically been the industry's largest end market
  • Industry Report - Industry Key Buyers Chapter

    The Iron and Steel Manufacturing industry in California is highly concentrated, where the three largest manufacturers alone have consistently accounted for over 80.0% of industry revenue over the past five years. Almost all industry operators manage just one facility, although there is one company that operates more than one establishment. Therefore, market share concentration is a function of individual facility size and production capacity within this industry, rather than the number of facilities a company operates.For example, sheet manufacturer California Steel Industries has an annual production capacity of 3.0 million tons while USS-POSCO has a capacity of 1.5 million tons. Las...purchase to read more.

    Additional Insights for the Iron & Steel Manufacturing in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron & Steel Manufacturing in California Industry are

  • Ability to pass on cost increases
  • Output is sold under contract
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as World price of steel and Value of private nonresidential construction in the Iron & Steel Manufacturing in California industry impact industry performance..

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    What is the Iron & Steel Manufacturing in California Industry?

    There are no integrated steel mills west of the Rockies. Accordingly, this Californian industry encompasses companies that manufacture basic mill shapes (e.g. long and flat products) from steel produced elsewhere, which is usually purchased from mills located in the Midwest or imported from abroad. This industry also includes specialty manufacturers that produce various grades of alloy steel (e.g. corrosion-resistant, electrical and other ferroalloys).

    Industry Products
  • Hot-rolled sheet
  • Cold-rolled sheet
  • Galvanized sheet and tinplate
  • ERW pipe and other tubular products
  • Rebar and other long products
  • Specialty steel and other ferroalloys
  • Industry Activities
  • Manufacturing hot-rolled steel products from purchased steel slabs
  • Manufacturing cold-rolled steel products from purchased steel coils
  • Manufacturing galvanized steel sheet and tin plate
  • Manufacturing long steel products (e.g. rebar) from scrap within a mini-mill
  • Manufacturing other basic steel shapes (e.g. bar, rod, strip and wire)
  • Manufacturing electric-resistance welded (ERW) pipe and other tubular products
  • Manufacturing grain-oriented electrical steel
  • Manufacturing corrosion-resistant, stainless and other specialty grades of steel
  • Manufacturing other ferroalloys in powder form, excluding nickel superalloys
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of steel
  • Value of private nonresidential construction
  • External competition for the Iron & Steel Manufacturing industry
  • Industrial production index
  • Value of Residential Construction in California

  • Current Performance
  • Steel prices
  • The West Coast steel market
  • Major markets
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Key drivers of demand
  • Mixed regulatory outlook
  • Industry structure
  • Table: Iron & Steel Manufacturing in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron & Steel Manufacturing in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Metal Pipe & Tube Manufacturing
  • Steel Rolling & Drawing
  • Ferrous Metal Foundry Products
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Truck & Bus Manufacturing
  • Truck, Trailer & Motor Home Manufacturing

  • Key Selling Industries
  • Copper, Nickel, Lead & Zinc Mining
  • Electric Power Transmission
  • Iron & Steel Manufacturing

  • Products & Services
  • Galvanized sheet and tinplate
  • Hot-rolled sheet
  • Specialty steel and other ferroalloys
  • Cold-rolled sheet
  • Rebar and other long products
  • ERW pipe and other tubular products
  • Chart: Iron & Steel Manufacturing in California Industry Products and Services Segmentation

  • Major Markets
  • Steel service centers
  • Construction
  • Industrial applications
  • Container manufacturing
  • Other
  • Chart: Major Market Segmentation for the Iron & Steel Manufacturing in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Iron & Steel Manufacturing in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron & Steel Manufacturing in California Industry

  • California Steel Industries Inc.USS-POSCO IndustriesGerdauPSM Industries Inc.
  • Table: California Steel Industries Inc. - financial performance
  • Table: USS-POSCO Industries - financial performance
  • Table: Gerdau - financial performance
  • Table: PSM Industries Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Iron & Steel Manufacturing in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Iron & Steel Manufacturing in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Domestic flat-rolled steel price index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blast Furnace
  • A furnace used in integrated steelmaking, in which coke and iron ore react together under a hot air flow to form steel.
  • Coke
  • A high-carbon solid produced by heating coal in an oven to drive off volatile components.
  • Electric Arc Furnace
  • A furnace for scrap-based steelmaking, in which scrap steel is melted and recycled.
  • Ferroalloy
  • An iron alloy with a high proportion of one or more other elements that is used in the production of steel as a raw material.
  • Mini-Mill
  • A steel producer that obtains most of its iron from recycled scrap steel and primarily uses electric arc furnaces.
  • Open Hearth Furnace
  • A furnace for steelmaking, in which carbon and other impurities are burnt off pig iron to produce steel.
  • Pig Iron
  • The intermediate product of smelting iron ore with coke; usually transferred in molten form to steelmaking furnaces.
  • Why buy this report?

    The Iron & Steel Manufacturing in California industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Iron & Steel Manufacturing in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Iron & Steel Manufacturing in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Iron & Steel Manufacturing in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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