Nucor at the Crossroads

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Nucor at a Crossroads

Background of the US steel industry
In 1986 total domestic steel consumption in US was 90 million tons, this comprised of 69 million tons of domestically produced steel and 21 million tons imported. Post 1979, the demand for steel started falling year on year due to stagnation of many steel-intensive industries, particularly construction and availability of substitutes such as aluminium, plastics and advanced composite.
US Steel makers | Integrated | Mini mills | Speciality steelmakers | Capacity | 107 million tons | 21 million tons | 5 million tons | Product | Sheets and Strip | Wire and bars | Stainless steel product | Major players | U.S. Steel, LTV steel, Bethlehem steel | North star, Nucor, North western, Florida, Chaparral. | |
Industry attractiveness: The steel products are classified majorly into 4 categories: Semi finished products, Sheet and strip, bars, wire and other structural shapes.
The U.S. steel industry had major four products. Figure on the left shows the attractiveness of industry for these product based on industry size and growth potential. The flat sheet industry has the highest volume and growth potential, wire and structural product has the lowest growth potential and industry size. Semi-finished product have average growth potential and low market share and Bars have medium size and low growth potential

The U.S. steel industry had major four products. Figure on the left shows the attractiveness of industry for these product based on industry size and growth potential. The flat sheet industry has the highest volume and growth potential, wire and structural product has the lowest growth potential and industry size. Semi-finished product have average growth potential and low market share and Bars have medium size and low growth potential

Overall attractiveness of the steel industry
The industry is growing with the increase in the demand of the flat sheet, 38% of the flat sheet

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