And labor and energy costs that are a fraction of those in the US make steel production much cheaper in other countries. US steel mills also are battling to retain markets against other materials. This is especially true in the automotive sector, where manufacturers are replacing steel components with lightweight aluminum. According to the Aluminum Association, aluminum was the fastest-growing automotive material of the 1990s, with use more than doubling over the decade. Cars assembled in 1999, on average, contained 248 pounds of aluminum.
Some newer models have significantly more.
Versions of the Lincoln LS, introduced in 1999, contain as much as 450 pounds of aluminum. Aluminum is about 30 percent lighter than equivalent steel engine or body components. In addition, aluminum companies say their material absorbs crashes better than steel and is easier to recycle. The sector is highly fragmented, with no single producer controlling more than 14 percent of the market. At the start of the 1980s, mini-mills accounted for approximately 15 percent of US steel output.