Steel
This foundational industry processes iron ore and scrap metal into a strong alloy that serves as the structural backbone of modern infrastructure, automotive manufacturing, and machinery.
Why it exists
Steelmakers convert iron ore (and scrap) into steel, a versatile structural and engineering material.
Why it’s necessary
Steel is foundational for buildings, bridges, vehicles, machinery, pipelines—almost every physical system in the modern economy.
Key components
Blast furnace/basic oxygen furnace (BF/BOF) routes
Electric arc furnaces (EAF) using scrap
Rolling mills (flat, long, specialty steels)
Raw materials: iron ore, coking coal, scrap, alloys
How to evaluate businesses
Assess technology mix (EAF vs BF), cost position, raw material strategy, product mix (commodity vs specialized), and exposure to end-markets (construction, autos, energy). Capacity discipline, leverage, and capital allocation are critical in such a cyclical industry. EAF players often have structural advantages in flexibility and emissions.
How the industry could be improved
Accelerating shift to EAF and low-carbon routes, better scrap collection systems, and more specialty/high-strength steels that use less metal per unit of performance. Digitalization of mills and supply chains can improve yields, uptime, and responsiveness to customers.