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Companies in this industry engage in converting pig iron to steel, making steel, and manufacturing steel shapes, pipes, and tubes. Major companies include Nucor and United States Steel (both of the US), as well as ArcelorMittal (Luxembourg); Hebei Iron and Steel and Wuhan Iron and Steel (both of China); JFE and Nippon Steel & Sumitomo Metal (both of Japan), POSCO (South Korea), Tata Steel (India), and ThyssenKrupp (Germany).
The global steel industry produces about 1,600 million metric tons of steel per year, according to WorldSteel. China is by far the largest steel maker. China produces more steel than the next six largest steel making countries combined, and accounts for more than half of global steel production. Other top steel producers include Japan, the US, India, South Korea, Russia, and Germany.
The US steel production industry includes about 250 companies with combined annual revenue of about $103 billion.
Demand comes largely from manufacturers of durable goods such as motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends on efficient operations, because most products are commodities sold based on price. Big companies have large economies of scale in production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by serving regional markets or producing specialty products. The US industry is highly concentrated: the 50 largest companies generate more than 90 ...
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