THE STEEL INDUSTRY: AN ECONOMIC ANALYSIS
This research presents the results of an economic analysis of the steel industry in the United States. These results are presented in discussions related to (1) market structure, industry concentration, barriers to entry, the ability of the industry to control prices, non price competition within the industry, and the effects of foreign competition on the industry, the impact of government on these factors, (2) market segmentation, (3) the incorporation of new technologies and managerial innovations into the industry, and (4) industry profitability.
Market Structure, Industry Concentration, Ability to Control Prices, Non Price Competition, Foreign Competition, and Effects of Government_
Ray Rees, Industrial Economics, 4th ed. (Harmondsworth, England: Penguin Books, 1993), 216.zhe American steel industry is analyzed in each of these contexts in the following discussions.
Seller concentration refers to both the number of firms participating in a market, and the size of those firms in relation to one another. Seller concentration is most often measured within the context of market share, although at times such measurement may reflect aggregate concentration within the contexts of assets, value added, profits, employment, or any of a number of other indicators. Seller concentration within the American steel industry is considered within the context of market share. The American steel industry is divided into two major groups--the integrated steelmakers and the general steelmakers. The integrated steelmakers use iron ore and coke in the production of carbon steel, while the general steelmakers use ferrous scrap in the production of carbon steel. In 1993, the integrated group accounted for two-thirds (66.7 percent) of American steel output with the remaining 33.3 percent being produced by the general steelmakers. Those percentages do not represent market shares for the two groups ...