The global steel market is expected to top1.5 billion metric tons by next year, expanding at an annual rate of 8 percent between 2001-2010.
While growth is expected to continue over the next several years, its growth level is expected to slow, according to the Global Industry Analysts Inc.’s report, titled Steel: A Global Strategic Business Report.
The industry is expected to witness marked differences in consumption in different regions of the world. Steel requirement would be in two basic sectors, the mass market and the high-end market. Developing nations would mostly derive demand from mass products, which would be addressed by the expanding steel production and trade volumes. On the other hand, the high-end market inclusive of the automobile industry would require better product and performance quality from the steel industry. In addition, increasing industry consolidation and sustained high cost of raw materials is expected to bring about stability in steel prices.
Rapid economic growth and on-going domestic infrastructure developments in the Chinese steel market is propelling the global steel demand. Construction, the largest end-use sector for steel, is expected to register strong growth. Following protective measures enforced by United States and other nations, the global steel industry is likely to resurface from the volatile conditions witnessed in the recent past. The spurt in demand is projected to aid in rapid industry consolidations and capacity expansions mostly in China and other countries in the Asia-Pacific region. China is the largest steel market as well as the largest producer and exporter of steel in the world.
Demand for steel in China is projected to reach 595 million metric tons by the year 2010, at a very high CAGR of about 16 percent, as stated by Global Industry Analysts, Inc. United States is the second largest market and the steel consumption is estimated at over 133 million metric tons for the year 2007.
Global steel prices increased rapidly in the recent past, directly affecting profit margins of end-use industries, including construction companies and automobile producers. Lower margins impacted financial competence of several companies worldwide, even in the United States where several component manufacturer units became sick. Construction industry, with an estimated consumption of 621 million metric tons of total global steel consumption in 2007, is projected to represent the largest end-use segment of steel. The industry is also the fastest expanding end-use segment with a projected CAGR of nearly 11 percent during the 2001-2010 period.
Large-scale mergers and acquisitions are expected to grip the industry for the better in the coming years. This is supported by the fact that top ten global producers account for less than a third of the total global steel market, indicating a fragmented industry.
The report provides a comprehensive review of market trends, drivers, product overview, competition, product introductions/innovations, and recent industry activity. The report also provides statistical data on major producers, exporter, and importers of Steel, worldwide. The study also analyzes market data and analytics in volume sales for regions such as United States, Canada, Japan, Europe, Asia-Pacific, Middle East, Latin America, and Africa by the following end-use segments - Construction, Automotive, Machinery, Other Domestic/Commercial Equipment, and other end-uses. The study also includes long-term projections of the steel market for the period 2011-2015.
For more details about this research report, please visit http://www.strategyr.com/Steel_Market_Report.asp