Global Electric Arc Furnaces Market 2019-2023
About Electric Arc Furnaces
Electric arc furnaces (EAF) are an integral part of steel minimills and are used to produce crude steel using scrap iron or a mixture of scrap iron and direct reduced iron (DRI).
Technavio’s analysts forecast the global electric arc furnaces market to grow at a CAGR of 10.98% during the period 2019-2023.
Covered in this report
The report covers the present scenario and the growth prospects of the global electric arc furnaces market for 2019-2023. This market research report offers a comprehensive analysis of the market segmentation by technology (DC arc furnace, and AC arc furnace).
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Electric Arc Furnaces Market 2019-2023
Technavio recognizes the following companies as the key players in the global electric arc furnaces market: DANIELI, IHI, Primetals Technologies, Sinosteel, SMS group, and Tenova (Techint Group).
Commenting on the report, an analyst from Technavio’s team said: “Improvements in extraction and mining technologies have resulted in low prices of natural gas and non-coking coal. This have led to low production cost of DRI which is used with scrap steel to produce crude steel. Thus, the increasing production of DRI will be a key trend that will drive the growth of the electric arc furnaces market during the forecast period.”
According to the report, one of the major drivers for this market is the lower investment requirements of EAF route than BF-BOF route. Since, minimills use scrap iron to produce steel, the operating, material handling and processing cost is lesser than that of integrated steel plants. This leads to lower capital expenditure for EAF route than BF-BOF route for the same steel output, which in turn drives electric arc furnaces market growth.
Further, the report states that one of the major factors hindering the growth of this market is the downsizing of the Chinese steel industry to reduce the steel sector’s debt. The Chinese government is also shutting down several outdated and illegal steel plants to lower pollution levels in Chinese cities such as Beijing and Hebei. Since China is one of the largest producers, consumers and exporters of steel in the world, downsizing of the Chinese steel industry will negatively impact the growth of electric arc furnaces market.
Tenova (Techint Group)