Step 1: Understand the behavior of steel under stress.
In the stress-strain curve for structural steel, necking occurs after the material has yielded. The material begins to deform plastically after the yield point and necking starts before the ultimate strength.
Step 2: Conclusion.
Necking is a localized reduction in the cross-sectional area of the material and begins after the yield point, not at the ultimate strength.
Final Answer:
\[
\boxed{\text{after yield strength}}
\]