The North America Metal Works Sectors : A Company and Industry Analysis (March 2005)
Mergent, March 2005, Pages: 32
This report examines the metal works sectors in the United States and Canada
Current Environment - Key Points
- In 2004, apparent steel consumption was the strongest in North America (up 15%) among the Organization for Economic Cooperation and Development (OECD) countries, while China's consumption rose almost 11%, some 25 million tons more than in 2003
- The average price for a ton of cold-rolled sheet steel was 144.6% higher in 2004, at $690, than a year earlier
Strong global demand caused the US steel market to shift from cost-push pricing to demand-pull pricing
- US primary aluminum production totaled 2,516,864 metric tons in 2004, a 6.9% fall from 2,704,495 metric tons in 2003
Domestic production decreased owing to cutbacks attributed to increased energy and alumina
- US and Canadian metal companies reported strong profits as a result of price rises in 2004, despite related increases in raw material, energy and transportation costs
- Three steel giants, Amsterdam-based Ispat International N.V., Amsterdam-based LNM Holdings N.V
and Ohio-based International Steel Group Inc
(ISG) merged to become the world's largest steel producer
In the US, at least 12 more M&A deals were pending government and shareholders- approval, while the Canadian market was comparatively quieter
Industry Profile - Key Points
- US imports of selected metals, including steel, aluminum, copper, lead, zinc and nickel, totaled 70.6 million metric tons in the second half of 2004, up 48% from the 47.7 million metric tons imported in the same period in 2003
- US exports of metals for the same period grew modestly by 8% to 34.1 million metric tons, compared with 31.6 million metric tons in 2003
- Total steel imports in the US surged 74% to 21.1 million net tons in the second half of 2004 as a result of severe shortages in domestic supply, substantially higher US steel prices compared with the rest of the world and the scrapping of Steel 201 tariffs
- For the first ten months of 2004, total shipments of steel from Canadian producers grew 1% to 13.8 million net tons, compared with 13.7 million net tons shipped for the same period a year ago
- Canada ranks third in the world in the production of primary aluminum
Total value of Canadian aluminum exports rose 2.6% to C$3.61 billion ($2.90 billion) in the second half of 2004, from C$3.52 billion ($2.83 billion) in the second half of 2003
Market Trends and Outlook - Key Points
- The automotive industry's drive for improved fuel economy and emission levels has encouraged the development of advanced high-strength steels, which are cheaper than aluminum and can be fabricated into much lighter and more versatile structures than mild steels
- The metal industry in the US is benefiting from robust demand from China, the world's biggest steel importer
The country imported 29.3 million metric tonnes of steel products in 2004
- Rocketing steel prices resulted in many construction-equipment companies paying 60% more for steel in 2004 than in 2003
- Deconstructing is becoming a trend at demolition sites across the US as part of the recycling effort
- China is Canada's second largest trading partner, after the US, and took C$6.5 billion ($5.23 billion) worth of Canadian exports in the first 11 months of 2004, making it a logical alternative for investors not yet willing to invest in China
- The appreciation of the Canadian dollar resulted in reduced Canadian exports for metal producers as these commodities are priced in US dollars
Current Environment - US
- Sector Overview
- Sector Performance
- Leading Companies
- Mergers & Acquisitions
Current Environment - Canada
- Sector Overview
- Leading Companies
- Mergers & Acquisitions
Industry Profile - US
- Industry Size & Value
- Industry Focus
- Sector Investment
- Research & Development
- Policy & Regulatory
Environment
Industry Profile - Canada
- Industry Size & Value
- Industry Focus
- Research & Development
- Policy & Regulatory
Environment
Market Trends & Outlook -
US
- Steel Stealing Back Lost
Automotive Market Share
- China Still Hungry For Steel
- High Prices Hurt Steel Users
- Metal Recycling Efforts Gain
Momentum
- Market Outlook
Market Trends & Outlook -
Canada
- Canada as the Gateway to
Lucrative Chinese Market
- Strong Dollar Hurts Export
Growth
- Market Outlook
The Scope of this Report
Comparative Data
Key References
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