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Nucor Steel_Rob Fulper11.What are the primary competitive forces impacting U.S. steel producers ingeneral and the producers like Nucor that make steel products via recycling scrap steel inparticular?Please do a five-forces analysis to support your answer.The primary competitive forces impacting U.S. steel producers are described in the five-forces analysis below.Competition for customers – The steel industry is very competitive and customers willseek the best price for the product. Most steel producers do provide a quality product which canbe understood by reading and understanding Mill Test Reports (MTRs) and Certificate ofConformance (COCs). As a former buyer of steel products I understood if my steel was comingfrom any of the U.S. steel mills that the product would be quality. My goal was to purchase theproduct at the best price possible.Product Substitutions – The added pressure of product substitutions are also part ofcompetitive forces U.S. steel producers face. In some cases alternate materials can be substitutedfor steel. However, this is typically considered low risk to the steel industry.Suppliers – The price of recycled steel prices can fluctuate. If prices of scrap steel risethis can cause operating costs to rise for steel mills who utilize scrap steel to produce new steel.However, Nucor did purchase the David J. Joseph Company in 2008 to help alleviate purchasingscrap steel from other scrap steel suppliers.Customers – During a “buyer’s market” the company is at risk for the customer topurchase steel from other suppliers. The customer has considerable bargaining power andleverage.During a seller’s market the company’s exposure is reduced to its largest customers.Barriers – The steel market is very competitive so it is unlikely that a new startupcompany will likely enter the market. However, companies like Nucor purchase smaller steel