Government Investments and Automotive Innovations Propel U.S. Steel Rolling & Drawing Market Forward

(MENAFN- P&S Intelligence) According to the latest market research study published by P&S Intelligence, the U.S. steel rolling and drawing market reached a value of USD 23.8 billion in 2024 and is set to grow at a steady CAGR of 5.5%, reaching USD 36.1 billion by 2032. This expansion is primarily fueled by rising investments in construction and infrastructure, surging automotive production, and robust industrial activity across the country.

Backed by significant federal spending initiatives such as the Infrastructure Investment and Jobs Act and the CHIPS and Science Act, the U.S. is witnessing an industrial revival that has created strong and sustained demand for high-strength and specialty steel products. The steel sector is further energized by a surge in nonresidential construction, with annual spending reaching over USD 2.1 trillion and a 71% increase in manufacturing facility construction from 2022 to 2023. These developments, coupled with continuous advancements in lightweight automotive materials and renewable energy installations, position rolled and drawn steel as a core material across multiple high-growth industries.

Despite market challenges, such as fluctuating raw material costs and evolving environmental regulations, the sector is evolving rapidly, with manufacturers embracing innovative electric arc furnace (EAF) technologies and sustainable production methods.

Key Insights

• In terms of process types, hot rolling led the market in 2024 with a 55% share, driven by its widespread application in producing structural components like I-beams and heavy plates. Cold rolling is forecasted to grow at the highest CAGR of 6%, owing to the rising demand for precision-grade, high-strength steel in automotive, electronics, and appliance manufacturing.
• By product type, flat rolled steel accounted for the largest share (45%) in 2024, supported by its versatile usage in automotive body panels, construction plates, and consumer appliances. Meanwhile, steel tubes & pipes are set to register the highest growth rate, propelled by energy infrastructure projects and the expansion of renewable energy installations.
• The distributors & wholesalers channel dominated the market with a 55% share in 2024, reflecting its vital role in managing diversified steel inventories and offering value-added services. Direct sales are anticipated to grow at a 6.5% CAGR, spurred by digital procurement platforms and demand for high-specification steel.
• Among end uses, construction & infrastructure held the largest market share at 35% in 2024. This segment benefits from ongoing urbanization and federal investments in public works. The automotive & transportation category is poised for the fastest growth, driven by EV manufacturing and the adoption of advanced high-strength steels to meet fuel efficiency and safety standards.
• Regionally, the Midwest held the leading share at 35% in 2024, due to its historic concentration of steel production facilities and integrated mills. The South is projected to be the fastest-growing region, fueled by rising automotive manufacturing, energy sector investments, and pro-business policies attracting industrial development.
• Technological innovations are reshaping the market, with growing adoption of electric arc furnace (EAF) technology promoting sustainable steelmaking. Demand is also rising for advanced high-strength steels used in EVs and aerospace components, supporting weight reduction and performance improvements.
• Key players dominating the U.S. steel rolling and drawing market include Nucor Corporation, Cleveland-Cliffs, Steel Dynamics, U.S. Steel, Insteel Industries, Davis Wire Corporation, and others. Consolidation continues to define the competitive landscape, due to high capital requirements and economies of scale.
• Notable industry moves include Nippon Steel Corporation’s acquisition of U.S. Steel for USD 14.9 billion, Ryerson Holding’s acquisition of Hudson Tool Steel Corporation, and JSW Steel USA’s USD 110 million investment in plate mill modernization in Texas.
• The defense and aerospace sectors are driving demand for defect-free, high-performance steel, with over 70% of U.S. aerospace metallic structures composed of rolled materials. These applications require high fatigue resistance and strict compliance with safety regulations.
• Opportunities are expanding as renewable energy projects increasingly require specialized steel components. Wind turbines rely on high-strength steel plates, while solar farms need durable steel framing systems, contributing further to long-term market growth.

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