Understanding the Structural Steel Supply Chain
Delta Steel is one of the largest service centers in the Southwest, actively supporting the structural steel supply chain for over 60 years. We offer a vast inventory of structural steel components and deep expertise to help customers find structural steel products that will best benefit their specific application.
Read on to learn about each critical step in the structural steel supply chain, from the steel mills that produce the steel components to the contractors who oversee projects from start to finish.
Steel Mills (Producers)
Steel mills are foundational to the structural steel supply chain. As the producers, they transform raw materials into the necessary building blocks for construction projects. Producers play the following roles in structural steel supply:
- Steelmaking. Steel mills use iron ore as the base material to produce steel and incorporate elements like manganese and carbon to realize the intended properties. The steel mills create molten steel from the raw materials through melting and refining processes.
- Shaping the Steel. Steel mills then cast molten steel into shapes like plates, channels, angles, columns, and beams. The casting is standardized to meet all industry specifications and ensure quality for easy integration into various construction projects.
- Large-scale Production. Many steel mills can operate at scale, using powerful equipment and technology to realize massive production capacities. They leverage this capacity to meet the growing demand for structural steel in construction applications.
Types of Producers
Integrated mills are large-scale producers in the structural steel industry. These larger mills use basic oxygen furnaces (BOF) to manage high volumes of material during production. Integrated mills maintain complete control over the steelmaking process, from iron ore mining to producing finished products.
Mini mills are smaller-scale producers that use electric arc furnaces (EAF) to produce new components and products from scrap steel. These more specialized producers are more flexible and can often provide faster turnaround times.
Service Centers
Service centers are a critical part of the structural steel supply chain. They maintain the storage, processing, and distribution of structural steel products. Service centers can also assist in increasing schedule speeds and reducing costs to meet the demands of the industry.
Service centers have warehouses with preprocessing capabilities to deliver structural steel ready for fabrication. They typically carry several months of inventory and supply most of the structural steel used in construction applications, including fabrication projects requiring just-in-time delivery.
Fabricators
Structural steel fabricators are typically located near service centers or construction sites. The fabricators receive steel from service centers and customize it per the engineers’ specifications. They use detailed shop drawings to create the structural steel components required. This can include welding, cutting, and assembly of everything from columns to beams.
Erectors
Erectors use fabricated structural steel pieces to produce a frame, welding and bolting the components onsite based on the existing construction documents.
The ability to gauge costs is critical at this stage; one cannot assume that less weight will lead to lower overall costs. In reality, material costs typically account for 25% to 30% of the total project cost, with fabrication and erection making up the majority of the total budget.
Contractors
Contractors oversee the project, coordinating each level of the supply chain in a project management role. Building off of the steel fabricator’s quality control processes, contractors implement thorough inspections before accepting the components to confirm that they meet the required specifications.
Design engineers work alongside the contractors and fabricators to guide the design process and integrate the components into a functional, well-supported structure.
Structural Steel Supply Chain From Delta Steel
The structural steel supply chain connects the producers who work with raw materials to the service centers that prepare and distribute the structural steel to fabricators. Contractors and designers work within this supply chain to realize functional designs and meet project specifications.
For over 60 years, Delta Steel has played a pivotal role in the United States structural supply chain. We are one of the largest structural steel service centers in the southwestern United States and have supported countless construction projects.
Browse our locations and speak with a specialist to see how our solutions can support your structural steel needs.