|Last Quarterly Update:||3/24/2014|
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Companies in the industry distribute steel and other primary metals and metal products and may also provide sawing, shearing, bending, leveling, cleaning, or edging services. Major companies include Reliance Steel & Aluminum, Ryerson, and Schnitzer Steel Industries (all based in the US), along with China Minmetals (China), Salzgitter (Germany), and Sojitz (Japan).
The global steel service center industry tends to be dominated by countries with significant levels of primary metals production, which include China, Japan, and the US. The global primary metals manufacturing industry generates annual revenue of more than $3 trillion.
The US metals distribution industry includes about 8,000 companies with combined annual revenue of about $200 billion. The industry includes metals service centers and companies that distribute metals other than steel, but not companies that distribute precious metals or metal ores.
The health of the manufacturing and construction industries drives demand for steel. A distributor’s sales volume determines profitability because many costs are fixed. Large distributors benefit from economies of scale in purchasing, processing, and distribution. Small companies can compete by specializing in particular products or offering special processing services.
The US industry is concentrated: the 50 largest companies generate about 50 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Steel products are made from carbon or alloy, stainless, or specialty steels, and come in the form of sheets, plates, bars, rods, tubes, and structural items like rails and I-beams. In addition to ...
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