Global Steel Industry Market 2015-2019
Overview of the steel industry
Technavio’s research analyst predicts the global steel industry to grow steadily at a CAGR of around 2%, in terms of consumption volume, during the forecast period. The growth of end-user industries such as automotive, mechanical machinery, and infrastructure and construction is fueling the demand for steel. The infrastructure and construction sector, which accounts for more than 52% of the world's steel consumption, is expected to grow at a rate of around 8% by the end of 2020.
The rapid growth of developing economies such as India is also expected to contribute to the market growth during the forecast period. Around 63% of the demand in India is catered by the coal-intensive blast furnaces. The Indian government has banned iron ore, to fight against illegal mining, which is expected to reduce the domestic supply.
Segmentation by type and analysis of the steel industry
Technavio Announces the Publication of its Research Report – Global Steel Industry Outlook 2015-2019
Technavio recognizes the following companies as the key players in the Global Steel Industry Outlook: ArcelorMittal, Ansteel, Baosteel, Hebei Iron and Steel, Jiangsu Shagang, Nippon Steel & Sumitomo Metal and POSCO
Other Prominent Vendors in the market are: Anyang Steel, Evraz, Geradau, Hyundai Steel, JFE Steel, Maanshan Iron and Steel, Nucor, RIVA, Shandong Iron and Steel, Shougang Group, Tata Steel, United State Steel, and Wuhan Iron and Steel.
Commenting on the report, an analyst from Technavio’s team said: “One of the major trends is the growth in tapping the high-growth sectors in various regions, which has shown robust growth rates for steel in the infrastructure and construction, oil and gas, and automotive industries. Thus, the combination of trends and drivers is expected to propel the growth of the market during the forecast period.”
According to the report, one of the major drivers in this market is the rapid urbanization in India. The growth rate in India's steel consumption is expected to be 7%-9%. Continuing rapid urbanization in India will drive the steel-intensive market in India. The Indian government is capitalizing hugely in infrastructure, and this will boost the demand for steel in India.
Further, the report states that one of the major challenges in this market is excessive production capacity. With steel supply overhauling demand, this has resulted in reduced profit margins for steel manufacturers.
ArcelorMittal, Ansteel, Baosteel, Hebei Iron and Steel, Jiangsu Shagang, Nippon Steel & Sumitomo Metal, POSCO, Anyang Steel, Evraz, Geradau, Hyundai Steel, JFE Steel, Maanshan Iron and Steel, Nucor, RIVA, Shandong Iron and Steel, Shougang Group, Tata Steel, United State Steel, Wuhan Iron and Steel.