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Key facts on the U.S. steel industry today

Posted by IndustryNet on Tuesday, June 19, 2018

large steel foundry with large hooks and two workersOn March 1, 2018, President Donald Trump announced that his administration planned to enact a 25 percent tariff on imported steel. On June 1, 2018, that tariff went into effect on steel from the European Union, Canada and Mexico. Ripples are spreading throughout the economy.

Reactions within the U.S. have varied more along regional lines than ideological ones, with optimism running high in steel-producing states. Steel manufacturers are anticipating increased prices and higher profits.

On Wall Street, steel stocks jumped. U.S. manufacturers are expected to decrease purchases of foreign steel in favor of domestic products, adding further to U.S. steel companies' bottom lines.

Steel is a vital component for many industries. It comprises up to 65 percent of the weight of a car. Steel is essential for construction because of its durability, workability and cost. About half of available steel goes into buildings and infrastructure. Equipment manufacturers use another 16 percent.

Industry sectors

The steel industry has many segments, including:

Steel and stainless steel castings
Steel foundries
Hot and cold rolled steel
Steel mills
Reinforced steel
Galvanized steel
Specialty steel

Steel castings may be of either carbon or alloy steels and are made in foundries. A few of a multitude of the uses of castings are:

Hydroelectric turbine wheels
Forging presses
Gears
Railroad truck frames
Mining machinery
Marine equipment
Engine cylinder blocksaerial view of shop floor with structural steel with steel bars

Hot rolled steel is used to produce slabs and beams. Cold rolled steel may be formed into flat or long products, seamless tubes and specialty items. Reinforcing steel or rebar is a vital component in construction, strengthening concrete structures.

Some steel mills may be integrated, having the capacity to perform all steps of primary c.

These mills convert ore to iron which is further processed into steel. The steel produced is cast into blocks and then shaped or roughed into smaller-sized billets, generally with an area of less than 36 square inches.

Manufacturers purchasing billets may roll them into bars or rods. Billets are also used as raw materials or feedstocks for extrusion to form products such as pipes.

Adding a coating of zinc to steel or galvanization provides corrosion protection. Galvanized steel is not only important in construction applications such as roofing nails but plays a significant role in the food industry.

The coating protects steel from interacting with food products as well as preventing environmental damage. Fabrication of food storage racks, countertops, meat hooks and even chicken coops utilizes galvanized steel.

Specialty steels may have proprietary compositions. They are categorized by the number and type of elements such as chromium or vanadium that comprise them. Specifications may include tensile strength, melting point, conductivity, ductility and malleability. These steels are essential to industries, including aerospace, defense, automotive, oil and gas.

U.S. steel industry growth

According to data gathered by IndustryNet from 275 steel producers in the U.S., average sales are $21.7 billion. That is an increase of 0.80 percent over sales of $2.5 billion a year ago. Average sales in steel represent 0.11 percent of average sales in all manufacturing.

The number of jobs in steel companies has risen from 31,017 to 31,610 over the past year, an increase of 1.91 percent.

The division between domestic distribution and international distribution in steel companies is 59 percent and 36 percent, respectively. This proportion contrasts with 70 percent U.S. distribution and 29 percent worldwide distribution for manufacturing as a whole.

Retaliatory tariffs on both steel and products containing it could significantly shift this balance.

female worker welding large steel sheet tubingRegional distribution of U.S. steel companies

The largest concentration of steel companies, 108 or 39 percent, is in the Midwest. This clustering is followed relatively closely by the South at 81, or 29 percent.

These numbers correlate reasonably well with the location of automotive manufacturing plants. This pattern applies particularly to Ohio, Illinois and Indiana as well as the southern states such as Alabama.

Many of these areas are also showing recent growth in food processing plants that may utilize steel products.

Finding a U.S. steel supplier

IndustryNet maintains updated comprehensive information on over 400,000 U.S. manufacturers and suppliers of 10,000 products and services A free online search will yield a list of steel suppliers by location and capabilities. Users of this resource can readily obtain quotes, download catalogs, view company photo and video libraries, and contact vendors either directly or through social media.

 

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