Steel Rolling & Drawing in Canada
The Steel Rolling and Drawing industry in Canada has rapidly expanded over the past five years due to strong export sales to the United States and the compounding effects of falling steel prices and a depreciating Canadian dollar. Integrated steel mills generally have a competitive advantage due to their ability to source steel internally, thus eliminating the need to rely on outside suppliers for steel rods or sheets. As primary steel producers continue to consolidate operations, they ultimately cut standalone rolling and drawing mills out of the market by selling rolled and drawn steel products directly to customers. The industry is expected to stagnate over the next five years, with growth stifled primarily by rebounding steel prices and an anticipated appreciation of the loonie. Within Canada, operators will continue to be squeezed as integrated steel mills and metal wholesalers will increasingly take on functions previously performed by steel rolling and drawing mills.
This industry rolls or draws steel purchased externally, which may be sourced from local steelmakers or imported. Industry operators produce a variety of shapes through the rolling process, while the only drawn product is wire of various grades and gauges. The industry does not include vertically integrated steel companies that incidentally draw or roll-form steel, nor does it include metal service centres whose primary business is the distribution of steel products to end markets.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.