June 10, 2024
Posted by: Explore Middle East FZE

For the time being the aggregate demand of industrial steel in the United States is stable. Conforming to world steel dynamics Construction, Automobile and Machinery are the top most steel consuming industries in the US. Construction industry consume 50 percent of the total steel used worldwide. That’s why it ranks on the top compared to all other industries. The US is the number one consumer of steel worldwide and no doubt China is the second one. The No. 2 industry consume steel is automobiles. This sector also consumes a huge amount of steel beside another sector. A heavy amount of galvanized sheets are required in the manufacturing of vehicles. The third largest industry is Machinery in which Steel pipes, steel plates, bars and many other forms of steel are used in a wide scale. America is the top most consumer of steel in the above three sectors.

Demand of steel in the United States of America

The demand for High tensile steel and stainless steel is also increasing in shipbuilding. In the USA there are more than 20 large scale companies into ship building and repair but the largest shipbuilding company in the US is Huntington Ingalls industries which consume approx. 130,000 to 150,000 tons of steel in a year.

According to the World Steel Association the universal demand of steel is anticipated to rise up by 1.7% to 1.793 billion metric tons in 2024. US Steel Industry production capacity is between 70 and 97 million metric tons annually. The United States is one of the top 5 nations that produces crude steel.

The circulation of scrap iron and steel in America was 48 million metric tons in 2022 and approximately 50 million metric tons in 2023 so it’s clear that the demand for steel is going up year by year. The production rate of raw steel was 9.9 million tons in 2021 and 8.8 million tons in 2022. The demand for raw steel is increasing in the US because most of the leading shipbuilding and aircraft manufacturing companies are situated in America and they focus on the best quality so India has a good opportunity to export high quality steel to the USA, India is 12th exporter of steel in the world.

Steel Consumption by sectors in USA

Steel Consumption by sectors in USA

Other industries in the USA consume most of the steel

In America the other steel consumption industries are oil and gas, petrochemical, paper and pulp, fertilizer, chemical processing, marine engineering and manufacturing industries. Energy, transportation and aerospace manufacturing companies also use a heavy amount of steel.

Automobile companies USA


Oil and Gas

Aerospace companies in USA

Petrochemical companies USA

Paper and Pulp Companies USA

Where does the US buy most of its steel?

The United State of America imports a maximum of raw steel from countries like Canada, Japan, Brazil, Mexico and South Korea. More than 79% of steel US imports from these countries. America has the best source to get most of its steel from Canada. The USA is the country who imports the largest steel globally.

Recently the United States passed an agreement to import steel and aluminium from India without paying extra duties. America acceded to purchase 336,000 tonnes of aluminium and steel from India. The quality of iron, steel coil and semi-finished steel are certified and durable in India. They maintained the quality standards of its steel.

China is the largest producer of steel because China produces 50% of the total steel production in the world. America imports steel from China on a large scale.

Steel Imported in USA 2021

Which industry is demanding more steel in the USA and why?

Construction industry is demanding additional steel in the USA, about 50% of structural steel consumes in development of construction. Infrastructure projects, commercial construction, refineries and energy sector. The demand for steel in the US is growing due to infrastructure development. There are more than 200 large size government projects coming up and sanctioned by state governments.

In the construction industry high tensile steel is required for strong foundation so mild steel is more popular and suitable because of high strength and cost effectiveness. The types of Mild steel more popular in construction are ASTM A36 steel plate, I Beams, reinforcing bar, Hollow sections, Thick wall pipes and Sheets.

In the aerospace industry the most popular materials are Grade 304 austenitic stainless steel because of low carbon, Titanium due to light weight and nickel alloys because of High strength and corrosion resistance properties. Alloy 625 and Nickel alloy 718 are also used in airplanes for exhaust system and wiring.

Aluminium is also used 80% in the manufacturing of aerospace parts such as wings and high precision mechanical parts. Aluminium has the corrosion-resistant property as well as light in weight which makes it a preferable alloy in aerospace. The most often used high strength aluminium alloy is grade 2024-T3. Aluminium metal is used from the beginning of manufacturing the aircrafts. Most of the parts of aeroplanes are made of high grade of stainless steel which can last for a long time like engines, landing gear, fuel tank etc.

Most crucial parts of an airplane are made of Nickel alloys because of its high temperature resistance and corrosion property.

Alloy 718, A-286, and 625 nickel alloy are used in jet engines, hot sections, turbines and other engine parts because of its highly resistant property to corrosion and oxidation. Nickel alloy can withstand temperatures up to 850°C/1562°F.

Few of the top buyers of Hot Rolled Round Bars in USA


Few of the top buyers of carbon steel plate in US

  • TTI

Top Buyers of duplex pipe and tubes in the Unites States of America


Does the US import a lot of steel?

The number one importer of steel in the world is the United States. America imports a lot of semi finished steel, approximately 61% from Brazil and 21% from Mexico, Italy, Germany, France, and European countries.

List Of Countries From where US Buy Most of its Steel

Steel is not produced in America domestically as much as it is consumed so that the US imports a huge amount of iron and steel from other countries. China is the main country in which the US imports the maximum amount of its required steel.

A different variety of steel like carbon steel, stainless steel, tool steel, and high alloy steel are necessary to the manufacturing of aero, rail construction, automobile, and other different types of manufacturing units. It is not possible to produce all types of grades in steel domestically. The US import raw steel from other countries as per its own standards.

Import of Semi Finish and Finished Steel Products in USA

How can India increase steel exports to the USA?

India can increase steel and aluminium exports to the USA by improving the quality of steel as well as by certification as per American standards. The majority of Indian steel mills continue to produce their steel products using ancient techniques due to low cost operation. Because of this they are not able to utilise their full production capacity. India is producing high quality super alloys, exotic materials and aluminium but the production capacity is quite low because of old rolling mills and traditional methods. Also, the domestic demand of steel is high in India so not able to export much.

To increase its steel exports to America, it needs to improve steel manufacturing mechanisms by raw material study, floor material examination, laboratory material analysis, scrap material detection, and logistic support at low cost, and the most important is quality test and certifications as per international parameters.

India should also pay attention to the technologies used in the steel manufacturing process. Steel workers should have the educational knowledge of all the key requirements of steel process such as: process of spectrometry (ensure that furnaces are working at maximum efficiency), Radiation Detection, monitoring systems start from incoming raw materials to final finish product testing and packaging.

India has various advantages to increase the export of steel to the US. Low cost and skilled working force, and an affluence of resources for iron ore. Due to these benefits, Indian steel producers are able to produce steel at a lower cost than many of their international competitors. The other benefits are increased economies scales, Competitiveness and market share growth, stretch out to a global scale, increment in profitability.

Which metal is most in demand in the USA?

The most demanding steel is stainless steel grades 304 and Gr 316L. Also, the type of steel is flat steel like sheets and plates which are made by slabs. The rapid development in metropolitan infrastructure is totally depended in the supply of steel moreover steel is utilised to the progression of household appliances, bridges, construction, oil and gas pipelines, automobiles, rail tracks and power.

The need of steel pipelines is growing side by side for oil and natural gas industries, Power generation industries, The demand of high carbon steel is increasing in the pressure vessel manufacturing industry due to its strength and perseverance because of high carbon content.

The new railway tracks are also coming up in large areas of the USA so the demand for carbon steel will rise in the near future. Grade 1084 hot rolled medium carbon steel will be used to make these railway tracks.

Why is Titanium demand increasing in the USA?

Titanium Imported in Year 2023 in USA

The demand of Titanium is increasing in the USA because of its unique properties such as low density, high strength, light weight and its melting point is very high 1668°C. The use of titanium is a high amount in the healthcare industry, aerospace, automobile industry etc. The requirement of titanium is again high in the USA.

In the aerospace industry titanium is used in aircraft parts like airframe, aircraft engine, fastening elements etc. Titanium has an excellent high temperature performance, which is appropriate for jet engine and airframe parts that must endure temperatures ranging from below freezing to 600° Celsius. As a result, the demand for titanium will keep on growing in the coming years in the USA. Aircraft engines and frames also use a high amount of titanium as an example A380 airbus consume 70 tons of titanium for the manufacture of aircraft structure that is fittings, wings, landing gear, fuselage etc.

Titanium is used in a variety of medical applications, such as surgical instruments and implants, like hip balls, joint replacements, surgical instruments, orthopedic implant applications and wheelchair and dental implants etc. Titanium has a special characteristic property: the metal is not rejected by the body. It is not-toxic by nature.

Titanium special properties also demonstrate that they are favourable with CT (Computerized Tomography) and MRI (Magnetic Resonance Imaging).

Titanium is very expensive than other types of steel because it is rare to be found in its pure form, generally it is found bonded to other elements like ilmenite and rutile which can increase processing cost.