Steeled for trouble: Strong import competition continues to threaten industry performance

Firms in the Basic Steel Processing industry produce a variety of intermediate steel products including steel bars, strip, wire and sections. Typically, these would be sold as inputs to business in other industries. Over the past five years, industry revenue has been highly volatile, echoing conditions in the wider economy. A significant fall in global steel prices in 2015 caused industry revenue to contract over 2015-16. However, a resurgence in steel prices the following year helped to boost industry revenue by 11.2% in 2016-17. Overall, IBISWorld expects the industry's revenue to grow at a compound annual rate of 0.6% over the five years through 2019-20. In the current year, revenue is anticipated to contract by 1.3% to £705.8 more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Though domestic demand has been strong, import competition has drawn revenue away
  • Uncertainty has negatively affected car manufacturing activity, restricting demand for industry products
  • A decline in demand for UK-manufactured cars could reduce demand for industry products
  • Industry Report - Industry Products Chapter

    The Basic Steel Processing industry does not use intense heat in the manipulating of steel into finished products. Instead, processing is handled at a temperature below the metal's recrystallisation temperature, typically room temperature. This is known as cold processing. This method increases the strength of the end product by up to 20% and results in a better surface finish. Cold-processed steel products are typically more precise and thus pricier than hot-processed items.Cold-folded or cold-formed steel sectionsCold-folded or cold-formed steel sections represent the largest share of industry revenue, at an estimated 62.2% in 2019-20. Sections include beams, columns, piles and angles. The...purchase to read more.

    Additional Insights for the Basic Steel Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Basic Steel Processing Industry are

  • Ability to pass on cost increases
  • Economies of scale
  • Having a diverse range of clients
  • IBISWorld analysts also discuss how external factors such as World price of steel and Demand from commercial building construction in the Basic Steel Processing industry impact industry performance..

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    What's in this report

    What is the Basic Steel Processing Industry?

    Firms in this industry manufacture a range of steel products, such as bars, strip, sections and wire. All products are manufactured by using cold processing methods, such as cold rolling, forming and drawing.

    Industry Products
  • Cold-rolled bars
  • Cold-rolled narrow strip
  • Cold-folded or cold-formed steel sections
  • Cold-drawn wire
  • Industry Activities
  • Manufacturing steel bars by cold drawing, grinding or turning
  • Cold rolling narrow (less than 600 millimetres wide) steel strip
  • Manufacturing steel sectors by cold forming or folding on a press
  • Cold drawing steel wire
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of steel
  • Demand from commercial building construction
  • Demand from motor vehicle manufacturing
  • Demand from residential building construction

  • Current Performance
  • Commercial construction
  • Residential construction
  • Shifting gears
  • Players and profit
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions
  • Hitting the brakes
  • EU influences
  • US tariffs
  • Volatility and participation
  • Table: Basic Steel Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Basic Steel Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fastener & Screw Machine Product Manufacturing
  • Motor Vehicle Manufacturing
  • Commercial Building Construction
  • Residential Building Construction

  • Key Selling Industries
  • Electricity Supply
  • Iron & Steel Manufacturing

  • Products & Services
  • Cold-folded or cold-formed steel sections
  • Cold-drawn wire
  • Cold-rolled bars
  • Cold-rolled narrow strip
  • Chart: Basic Steel Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction companies
  • Automotive firms
  • Machinery and equipment manufacturers
  • Fastener manufacturers
  • Fencing manufacturers
  • Chart: Major Market Segmentation for the Basic Steel Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Basic Steel Processing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Basic Steel Processing Industry

  • Industry Globalization
    Voestalpine Metsec plc , Hadley Industries Holdings Limited, Tata Steel UK Limited,
  • Table: Voestalpine Metsec plc - financial performance
  • Table: Hadley Industries Holdings Limited - financial performance
  • Table: Tata Steel UK Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Basic Steel Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Basic Steel Processing Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cold Drawing
  • A metalworking process that uses tensile force to stretch metal. This process is usually performed at room temperature.
  • Cold Rolling
  • A metalworking process where metal is passed through rollers at below its recrystallisation temperature, increasing its strength and finish.
  • Cold-Formed Steel
  • Thin gauges of sheet steel that are stamped, rolled or pressed to make a product.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Basic Steel Processing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on Basic Steel Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Basic Steel Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Basic Steel Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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