The Equation Series
Menu

Industry study 14 of 24 · Manufacturing Research Companion: Companies, Strategic Moves, and Technical Studies

Steel, Aluminium and Metals

~7,000 words · 1 technical exhibit

Steel is the clearest case in industry of a technology shift deciding who survives. In 1970 the US steel industry meant integrated mills: blast furnaces making iron from ore and coke, basic oxygen furnaces turning it into steel, and the unions, pensions and towns built around them. By the 2020s most US steel came from electric-arc furnace (EAF) minimills that melt scrap. Nucor led that shift under Ken Iverson, and EAFs make roughly 70% of US output (common estimate, verify against AISI/worldsteel). Bethlehem Steel went bankrupt (15 Oct 2001), the PBGC took its pensions, and three rounds of consolidation followed:

What the study covers

  1. 1Overview: two technologies, one price
  2. 2How steel is made
  3. 3The US industry: Nucor and the minimill revolution
  4. 4Bethlehem Steel and the integrated collapse
  5. 5Consolidation: Cleveland-Cliffs and Nippon–U.S. Steel
  6. 6Section 232 and trade remedies, 2018–26
  7. 7China, overcapacity and Baowu
  8. 8Europe: ArcelorMittal, Thyssenkrupp, green steel and CBAM
  9. 9Aluminium: power is the raw material
  10. 10Copper and other metals
  11. 11Scrap: the minimill's commodity
  12. 12How to read steel and metals claims
  13. 13Key numbers
  14. 14Landmark companies and cases
  15. 15Pitfalls
  16. 16How an expert thinks about it
  17. 17Glossary

Technical exhibits

Worked examples, checklists and case studies included with this study.

Minimill vs Blast Furnace Margin Worked Example

Stylized integrated mill vs minimill in $/short ton of HRC: cost build-up; a margin grid by HRC and scrap price; break-even HRC; the crossover scrap price (~$425/st at $105 pellets); utilisation in a downturn; co-moving boom and bust; power and DRI levers; import parity at 0, 25% and 50% tariffs (computed in Python)

Companies in this study