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### IRON AND STEEL 1

(Data in million metric tons of metal unless otherwise noted)

Domestic Production and Use : The iron and steel industry and ferrous found ries produced goods in 2009 that were estimated to be valued at $110 billion. Pig iron was produced by 8 companies operating integrated steel mills in about 18 locations. About 57 companies, pro ducing raw steel at about 116 plants, had combined production capability of

about 113 million tons. Indiana accounted for 29% of total ra w steel production, followed by Ohio, 10%, Pennsylvania, 10%, and Michigan, 4%. The distribution of steel shipment s was estimated to be: war ehouses and steel service centers, 20%; construction, 18%; transportation (predomi nantly automotive), 11%; c ans and containers, 4%; and other, 47%.

Salient Statistics—United States : 2005 2006 2007 2008 2009 e
Pig iron production 2 37.2 37.9 36.3 33.7 18 Steel production: 94.9 98.2 98.1 91.9 56 Basic oxygen furnaces, percent 45.0 42.9 41.8 42.6 36 Electric arc furnaces, percent 55.0 57.1 58.2 57.4 64 Continuously cast steel, percent 96.8 96.7 96.7 96.4 97 Shipments: Steel mill products 95.2 99.3 96.5 89.3 52 Steel castings 3 0.7 e 0.7 e 0.7 e 0.7 0.4 Iron castings 3 7.4 e 7.4 e 7.4 e 7.4 4.0 Imports of steel mill products 29.1 41.1 30.2 29.0 14 Exports of steel mill products 8.5 8.8 10.1 12.2 8 Apparent steel consumption 4 113 120 116 102 56 Producer price index for steel mill products (1982=100) 5 159.7 174.1 182.9 220.6 180 Steel mill product stoc ks at service centers yearend 6 11.7 15.0 9.3 7.8 8.0 Total employment, average, number

Blast furnaces and steel mills e 134,000 e 132,000 e 128,000 125,000 124,000

Iron and steel foundries e 115,000 115,000 115,000 115,000 115,000 Net import reliance 7 as a percentage of apparent consumption 15 17 16 13 7

Recycling : See Iron and Steel Scrap and Iron and Steel Slag.

Import Sources (2005-08) : Canada, 18%; European Union, 15%; Ch ina, 12%; Mexico, 10%; and other, 45%.

Tariff : Item Number Normal Trade Relations

12-31-09 Pig iron 7201.10.0000 Free.

Carbon steel:

Semifinished 7207.12.0050 Free. Hot-rolled, pickled 7208.27.0060 Free. Sheets, hot-rolled 7208.39.0030 Free.

Cold-rolled 7209.18.2550 Free.

Galvanized 7210.49.0090 Free. Bars, hot-rolled 7213.20.0000 Free. Structural shapes 7216.33.0090 Free.

Stainless steel:

Semifinished 7218.91.0015 Free.

Do. 7218.99.0015 Free.

Cold-rolled sheets 7219.33.0035 Free. Bars, cold-finished 7222.20.0075 Free. Pipe and tube 7304.41.3045 Free.

Depletion Allowance : Not applicable.

Government Stockpile : None.

Prepared by Michael D. Fenton [(703) 648-4972, mfenton@usgs.gov, fax: (703) 648-7757]81


### IRON AND STEEL

Events, Trends, and Issues : The expansion or contraction of gross domestic product (GDP) may be considered a predictor of the health of the steelmaki ng and steel manufacturing industries, worldwide and domestically. The World Bank’s global GDP growth forecast for 2010 and 2011 was 2.0% and 3.2%, respectively, after a decline of 2.9% in 2009. The Federal Reserve Bank of Philadelphia survey of forecasters showed t he economy expanding in 2010, 2011, and 2012 at rates of 2.3%, 2.9%, and 3.2%, respecti vely, after contracting at a rate of 2.6% in 2009.

MEPS (International) Inc. forecast tota l world steel production in 2009 to be down 12% from that in 2008 (MEPS, 2009). MEPS also forecast declining steel production in 2009 in the Eu ropean Union, South America, the Commonwealth of Independent States (CIS), Africa, and As ia, of 26%, 24%, 18%, 9%, and 3%, respectively. World Steel Dynamics (WSD) forecast world crude steel production to decrease by 9% in 2009 and increase by 14%, 6%, and 5% in 2010, 2011, and 2012, respectively. WSD also fore cast crude steel production in China to decrease by 25% in 2009 and increase by 21%, 3%, and 2% in 2010, 2011, and 2012, respectively.

According to the World Steel Association, world apparent steel consumption (A SC) was expected to increase by 9.2% in 2010, after declining by 8.6% during 2009. China’s ASC was expected to increase by 5% in 2010, and was expected to account for 48% of world steel consumption. ASC in India was expected to grow by 12% in 2010. The U.S. ASC was expected to decline by 39% in 2009 and increase by 19% in 2010. In Japan and the CIS, the ASC was expected to increase by 16% and 8%, respectively, in 2010. The European Union ASC was expected to increase by almost 15% in 2010 after declining almost 33% in 2009, ac cording to the European Confederation of Iron and Steel

Industries.

Seven U.S. steel producers and the United Steelworkers Union filed an antidumping suit against China with the U.S. International Trade Commission and the U.S. Department of Commerce, covering $2.7 billion of steel imports into the United States. Steel producers contended that tariff increases were needed to help them survive the global recession. China intended to cut excess steelmaking capacity by consolidating its producers into three major steel groups. Also, China was planning to protect its steel in dustry by gradually raising import duties.

World Production : Pig iron Raw steel

2008 2009 e 2008 2009 e

United States 34 18 92 56

Brazil 35 22 34 24

China 471 540 500 550

France 12 7 18 12 Germany 29 17 46 29 Italy 11 5 30 18 Japan 86 61 119 79 Korea, Republic of 31 26 53 47

Russia 48 40 69 55

Ukraine 31 25 37 28 United Kingdom 11 7 14 9

Other countries 133 96 318 226 World total (rounded) 932 860 1,330 1,100

World Resources : Not applicable. See Iron Ore.

Substitutes : Iron is the least expensive and most widely used me tal. In most applications, iron and steel compete either with less expensive nonmetallic materials or with more expensive materials that have a performance advantage. Iron and steel compete with lighter materials, such as aluminum and plastics, in the motor vehicle industry; aluminum, concrete, and wood in construction; and aluminum, glass, paper, and plastics in containers.

e Estimated. Do. Ditto.

1 Production and shipments data source is the American Iron and Steel Institute; see also Iron Ore and Iron and Steel Scrap.

2 More than 95% of iron made is transported in molten form to steelmaking furnaces located at the same site.

3 U.S. Census Bureau.

4 Defined as steel shipments + imports - exports + adjustments for industry stock changes + impor ts, excluding semifinished steel products.

5 U.S. Department of Labor, Bureau of Labor Statistics.

6 Metals Service Center Institute.

7 Defined as imports – exports + adjustments for Government and industry stock changes.

U.S. Geological Survey, Mineral Commodity Summaries, January 2010