Fueling the fire: Falling steel prices will hinder industry revenue growth

The Iron and Steel Manufacturing industry has endured difficult operating conditions over the five years to 2018. Prior to the beginning of the five-year period, as downstream manufacturers ramped up production to meet renewed demand after the recession, the world price of steel soared. Ultimately, downward pressure on steel prices due to global overcapacity, coupled with the sharp appreciation of the US dollar in recent years, has presented a significant challenge to domestic steel producers. Over the next five years to 2023, import competition will continue to challenge the industry and push uncompetitive operators out of the market...purchase to read more.

Industry Statistics & Market Size
Revenue
$95bn
Annual Growth 13-18
-4.1%
Forecast Growth 18-23
Profit
Employment
99,895
Businesses
538

Industry Threats & Opportunities

  • Falling steel prices, even as downstream demand remains strong, will hinder industry revenue
  • Major players have increasingly sought assistance from the federal government in the form of antidumping duties
  • Steel experiences strong competition from other materials used in motor vehicle manufacturing
  • Industry Report - Industry SWOT Analysis Chapter

    The Iron and Steel Manufacturing industry is mature, indicated by its declining number of enterprises and slow level of technological change. Industry value added (IVA), which measures the industry's contribution to the overall economy, is estimated to decrease at an annualized rate of 0.9% over the 10 years to 2023. Comparatively, US GDP is projected to grow at an annualized rate of 2.2% during the same period. The industry is expected to underperform the economy as a whole in this period due to its highly cyclical nature. World price of steel greatly fluctuates based on supply and demand, usually out of the control of individual operators. For example, higher worldwide steel supply in 2018, coupled with slowing demand, is expected to push steel prices downward...purchase to read more.

    Additional Insights for the Iron & Steel Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron & Steel Manufacturing 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 Trade-weighted index in the Iron & Steel Manufacturing industry impact industry performance..

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    What's in this report

    What is the Iron & Steel Manufacturing Industry?

    Companies in this industry manufacture pig iron, steel and ferroalloys. Pig iron is often manufactured in a blast furnace or via newer direct-reduction methods. Steel may be manufactured in basic oxygen furnaces (newly made steel) or in electric arc furnaces (recycled steel). This industry also includes operators that manufacture basic steel shapes, such as bars, plates, rods, sheets, strips and wire or form pipes and tubes from steel they have produced themselves.

    Industry Products
  • Hot-rolled sheets and strips
  • Cold-rolled sheets and strips
  • Hot-rolled bars and shapes
  • Cold-finished bars and shapes
  • Steel ingots and semi-finished shapes
  • Tubular products
  • Industry Activities
  • Direct reduction of iron ore
  • Manufacturing and converting pig iron
  • Producing steel through the combination of coke and iron ore in blast furnaces
  • Producing steel by melting recycled scrap steel, usually with pig iron, in electric arc furnaces
  • Producing steel through the use of open-hearth furnaces
  • Manufacturing cold-rolled and hot-rolled steel products
  • Manufacturing basic steel shapes (e.g. bar, plate, rod, sheet, strip and wire)
  • Forming pipes and tubes from self-produced steel
  • Manufacturing and converting ferroalloys
  • 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
  • Trade-weighted index
  • Industrial production index
  • Demand from car and automobile manufacturing
  • Value of construction

  • Current Performance
  • Volatile steel prices and domestic drivers
  • International trade and industry assistance
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction and automotive
  • International trade and industry structure
  • Broader outlook
  • Table: Iron & Steel Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron & Steel Manufacturing 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
  • Coal Mining
  • Copper, Nickel, Lead & Zinc Mining
  • Electric Power Transmission
  • Iron Ore Mining

  • Products & Services
  • Hot-rolled bars and shapes
  • Hot-rolled sheets and strips
  • Cold-rolled sheets and strips
  • Steel ingots and semi-finished shapes
  • Other
  • Tubular products
  • Cold-finished bars and shapes
  • Chart: Iron & Steel Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Other trends

  • Major Markets
  • Construction
  • Automotive
  • Exports
  • Machinery manufacturers
  • Other markets
  • Energy
  • Container
  • Defense
  • Chart: Major Market Segmentation for the Iron & Steel Manufacturing Industry

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

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron & Steel Manufacturing Industry

  • Industry Globalization
    Nucor Corp., United States Steel Corp., Steel Dynamics Inc., ArcelorMittal S.A., AK Steel Holding Corp.,
  • Table: Nucor Corp. - financial performance
  • Table: United States Steel Corp. - financial performance
  • Table: Steel Dynamics Inc. - financial performance
  • Table: ArcelorMittal S.A. - financial performance
  • Table: AK Steel Holding Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Iron & Steel Manufacturing 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 Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of Steel (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 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

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