Nucor - Competitors

Nucor Competition

Now Viewing Nucor's competition in: Primary Metals Manufacturing (primary)

Recent Developments

Steel Industry Praises Drill Ban Expiration - The American Iron and Steel Institute praised Congress' decision to let the bans on offshore oil and gas exploration expire. The decision will end the Outer Continental Shelf moratorium on drilling, which had been renewed every year since 1981. The lift of the ban should benefit steel companies that supply makers of oilfield equipment and other steel products used in oil exploration and production.

Metals Exports Rise - US steel, aluminum, and copper exports increased in the first seven months of 2008 compared to a year before. Iron and steel exports increased more than 35 percent; demand stemmed from NAFTA partners Canada and Mexico, but also from developing markets including China, India, and Brazil. Exports of rolled, drawn, and extruded copper products rose nearly 10 percent; alumina and aluminum exports grew more than 9 percent.

Steel Shipments Increase - US steel mills shipped 3.8 percent more steel in July 2008 compared to July 2007, according to the North American Iron and Steel Institute. Despite the overall growth, the results for different steel markets were mixed: service centers and distributors rose 5.8 percent and oil and gas, 5.4; automotive fell 3.9 percent and construction and contractors, 1.2 percent.

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 highly automated: average annual revenue per worker is close to $300,000.

Full Industry Overview For Primary Metals Manufacturing

Primary Metals Manufacturing Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US primary ferrous and non-ferrous metals manufacturing is forecast to increase at an annual compounded rate of 4.4 percent between 2008 and 2013.

Primary Metals Production Growth Recovers

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.