Primary Metals Manufacturing Industry Profile

The US primary metals industry includes about 4,000 companies with combined annual sales of about $250 billion. Large companies include Nucor and US Steel (steel); Alcoa (aluminum); and Freeport-McMoRan Copper & Gold. The industry is concentrated: the 50 largest companies generate more than 50 percent of revenue.

The industry includes companies engaged in smelting and/or refining ferrous and nonferrous metals, such as iron and steel mills, rolled steel shape manufacturers, aluminum producers, and copper foundries. Metal ore mining and fabricated metal parts manufacturing are covered in separate industry profiles.

COMPETITIVE LANDSCAPE

Demand comes largely from the manufacturers of durable goods like motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends largely 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 operating efficient local mini-mills or producing specialty products.

The industry is capital-intensive: average annual revenue per worker is about $700,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major sources of revenue for the industry include steel mill products such as sheets, bars, and plates (about 40 percent of sales). Other activities include aluminum sheet, plate, and foil manufacturing; copper rolling, drawing, and extruding; and the production of shapes from iron, steel, and specialty metals such as titanium, molybdenum, and beryllium.

Companies are involved in three major types ...