Keep rolling: Rebounding steel prices and stronger demand from key markets will bolster revenue, despite competition

Following the recession, steel prices surged in response to accelerating industrial activity in China and other emerging markets, helping industry revenue rebound just prior to the five years to 2017. However, the construction sector's relatively slower recovery has hindered industry growth by depressing demand for steel wire products. Industry operators are likely to experience increasingly challenging operating conditions over the five years to 2022, including high levels of import penetration, intensifying competition from substitute products and constrained demand from the oil and gas sector...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
-3.0%
Forecast Growth 17-22
Profit
Employment
21,870
Businesses
363
Market Share of Companies

Industry Threats & Opportunities

  • As global demand for steel weakened, falling steel prices eroded inventory values
  • Recent trending toward just-in-time deliveries requires producers to accommodate smaller orders
  • Industry operators will continue to experience intense competition from other domestic industries
  • Industry Report - Industry SWOT Analysis Chapter

    The Steel Rolling and Drawing industry is in the decline phase of its life cycle. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to rise at an annualized rate of 1.1% over the 10 years to 2022. In comparison, GDP is expected to grow an annualized 2.0% over the period. There are few if any new major markets for the Steel Rolling and Drawing industry's products. Furthermore, industry products are well known and accepted, although they are experiencing rising competition from substitute products made from aluminum, plastic composites and other lightweight materials. In addition, domestic manufacturers continue to experience external competition from imports, which currently constitute 15.6% of domestic demand. Las...purchase to read more.

    Additional Insights for the Steel Rolling & Drawing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Steel Rolling & Drawing Industry are

  • Economies of scale
  • Having a diverse range of clients
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as World price of steel and Demand from car and automobile manufacturing in the Steel Rolling & Drawing industry impact industry performance..

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    What's in this report

    What is the Steel Rolling & Drawing Industry?

    Companies in this industry roll or draw purchased steel, which may be sourced from domestic steel manufacturers or imported from abroad. Companies produce a variety of shapes through the rolling process, while the only drawn product is wire of various grades and gauges. Typically, the end product is made to conform to customer specifications. The industry does not include companies that roll or draw steel they manufacture themselves or metal service centers that distribute steel products.

    Industry Products
  • Cold rolled steel sheet
  • Cold finished bars and other shapes
  • Ferrous powder metallurgy products
  • Steel wire drawn from wire rod
  • Fabricated wire products made from wire rod
  • Industry Activities
  • Rolling plates, sheets, strips, rods and bars from purchased steel (often described as cold rolling)
  • Drawing wire from purchased steel
  • Processing purchased steel to meet customer specifications
  • 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
  • Demand from car and automobile manufacturing
  • Value of private nonresidential construction
  • Industrial production index
  • Trade-weighted index

  • Current Performance
  • Rolling downhill
  • Demand trends and industry structure
  • Competing globally
  • Chart: Revenue Growth

  • Industry Outlook
  • Drawing a better picture
  • Competing domestically
  • Table: Steel Rolling & Drawing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Steel Rolling & Drawing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Metal Can & Container Manufacturing
  • Wire & Spring Manufacturing
  • Major Household Appliance Manufacturing
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Space Vehicle & Missile Manufacturing
  • Metal Wholesaling

  • Key Selling Industries
  • Electric Power Transmission
  • Iron & Steel Manufacturing
  • Metalworking Machinery Manufacturing

  • Products & Services
  • Cold rolled steel sheet
  • Steel wire drawn from wire rod
  • Fabricated wire products made from wire rod
  • Cold finished bars and other shapes
  • Other
  • Ferrous powder metallurgy products
  • Chart: Steel Rolling & Drawing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Steel service and distribution centers
  • Industrial and general manufacturing
  • Construction
  • Automotive manufacturing
  • Exports
  • Chart: Major Market Segmentation for the Steel Rolling & Drawing Industry

  • International Trade
    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 Steel Rolling & Drawing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Steel Rolling & Drawing Industry

  • Industry Globalization
    Worthington Industries Inc.,
  • Table: Worthington Industries Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Steel Rolling & Drawing 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 Steel Rolling & Drawing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of steel (2008-2022)

  • 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 steel making in which coke and iron ore react together under a hot air flow to form steel.
  • Die
  • A specialized tool used in manufacturing industries to cut or shape material using a press. Like molds, dies are generally customized to the item they are used to create.
  • Integrated Steel Mill
  • A facility that has all the functions of primary steel production, including the manufacture and processing of raw steel.
  • Mini-Mill
  • A steel producer that obtains most of its iron from recycled scrap steel and primarily uses electric arc furnaces.
  • Steel Rolling
  • The process of reducing the thickness of steel by passing it through a series of rollers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Steel Rolling & Drawing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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 Steel Rolling & Drawing:
    • 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 Steel Rolling & Drawing 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 Steel Rolling & Drawing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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