78



### IRON AND STEEL 1

(Data in million metric tons of metal unless otherwise no ted)

Domestic Production and Use : The iron and steel industry and ferrous foundries produced goods in 2009 and 2010

that were estimated to be valued at $74 billion and $139 billion, respectively. Pig iron was produced by 5 companies

operating integrated s teel mills in 15 locations. A bout 5 6 companies produc e raw steel at about 11 4 minimills.

Combined production capability was about 108 million tons. Indiana accounted for 24% of total raw steel production,

followed by Ohio, 10%, Michigan, 7%, and Pennsylvan ia, 7%. The distribution of steel shipments was estimated to

be: warehouses and steel service centers, 25%; construction, 22%; transportation (predominantly automotive), 13%;

cans and containers, 3%; and other, 37%.

Salient Statistics

— United States : 2006 2007 2008 200 9 2010 e

Pig iron production 2 37.9 36.3 33.7 19.0 29

Steel production: 98.2 98.1 91.9 59.4 90

Basic oxygen furnaces, percent 42.9 41.8 42.6 38.2 39

Electric arc furnaces, percent 57.1 58.2 57.4 61.8 61

Continuously cast steel, percent 96.7 96.7 96.4 97 97

Shipments:

Steel mill products 99.3 96.5 89.3 56.4 76

Steel castings e

, 3 e 0.7 e 0.7 e 0.7 e 0. 4 0.4

Iron castings e

, 3 e 7.4 e 7.4 e 7.4 e 4.0 4.0

Imports of steel mill products 41.1 30.2 29.0 14.7 22

Exports of steel mill products 8.8 10.1 1 2.2 8.4 11

Apparent steel consumption 4 120 116 102 63 82

Producer price index for steel mill products

(1982=100) 5 174.1 182.9 220.6 165.2 200

Steel mill product stocks at service centers

yearend 6 15.0 9.3 7.8 5.6 6.7

Total employment, average, number

B last furnaces and steel mills 102,000 102,000 107,000 e 109,000 110,000

Iron and steel foundries e 95,000 95,000 86,000 86,000 86,000

Net import reliance 7 as a percentage of

apparent consumption 17 16 13 11 7

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

Import Sources ( 2006

– 09 ) : Canada, 19%; European Union, 15%; China, 13%; Mexico, 9%; and other, 44%.

Tar iff : Item Number Normal Trade Relations

12

- 31

- 10

Pig iron 7201.10.0000 Free.

Carbon steel:

Semifinished 7207.12.0050 Free.

H ot

- 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 721 8.91.0015 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. Fen ton [(703) 648

- 4972, mfenton@usgs.gov, fax: (703) 648

- 7757]79



### 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 steelmaking and steel manufacturing ind ustries, worldwide and domestically. The World

Bank’s global GDP growth forecast for 2010 and 2011 was 2.7% and 3.2%, respectively, after 2.2% in 2009. The

Federal Reserve Bank of Philadelphia survey of forecasters showed the economy expanding in 2010 and 2011 at

rates of 4.2% and 4.3%, respectively, after contracting at a rate of 2.6% in 2009.

According to the Institute of Supply Management (ISM), economic activity in the manufacturing sector expanded in

September 2010 for the 14th consecutive month and t he overall economy grew for the 17th consecutive month.

However, the ISM manufacturing index declined steadily during 2010 from its high in January 2010, suggesting

weaker demand for steel products and slower growth in manufacturing activity during the rem ainder of 2010.

MEPS (International) Inc. forecast total world steel production in 2010 to be up 14% from that in 2009. MEPS also

forecast increasing steel production in 2010 in the European Union, South America, Asia, the Commonwealth of

Independent Stat es (CIS), and Africa of 22%, 13%, 12%, 8%, and 6%, respectively.

According to the World Steel Association, world apparent steel consumption (ASC) was expected to increase by 5%

in 2011, after increasing by 13% during 2010. China’s ASC was expected to incr ease by 3.5% in 2011 and was

expected to account for 46% of world steel consumption. ASC in India was expected to increase by 14% in 2011.

ASC in the United States was expected to increase by 8% in 2011. European Union ASC was expected to increase

by almos t 6% in 2011 after increasing 19% in 2010.

World Production : Pig iron Raw steel

200 9 20 10 e 200 9 20 10 e

United States 19 29 59 90

Brazil 35 32 34 33

China 544 600 568 630

France 8 10 13 16

Germany 20 29 33 44

India 30 39 57 67

Japan 86 82 88 110

Korea, Republic of 30 31 53 56

Russia 44 47 59 66

Ukraine 26 26 30 31

United Kingdom 8 7 10 10

Other countries 85 67 236 250

World total (rounded) 935 1,000 1,240 1,400

World Resources : Not applicable. See Iron Ore.

Substitutes : Iron is the least exp ensive and most widely used metal. 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 alum inum 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 Ins titute; see also Iron Ore and Iron and St eel 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

- semifi nished steel product imports.

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, Min eral Commodity Summaries, January 201 1