Five Forces Analysis of the Steel Industry.For a long time the steel industry was seen as a static and unprofitable one.Producers were nationally based, often state owned and frequentlyunprofitable. The early 2000’s saw 50 independent steel producers going intobankruptcy in the U.S. alone. But there then followed a surge in confidence.During 2006 Mittal Steel paid $35bn to buy European steel giant Arcelor,creating the world’s largest steel company. The following year, Indianconglomerate Tata bought Anglo-Dutch steel. But these acquisitions weremade just before the onset of the Great Recession in 2008 and further turmoilin the steel industry at large.New Entrants.In the last two decades, China has become a major force in the world steelindustry. Between the early 1990’s and 2011 Chinese producers increased theircapacity seven fold. Although the Chinese share of world production reachedover 45% by 2011, most of this was directed at the domestic market.