The Global Market for Steel is Projected to Reach 1.89 Billion Metric Tons by 2020

Long Awaited Recovery in the Construction Sector to Support Short-term Growth in the Steel Industry, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Steel market. The global market for Steel is projected to reach 1.89 billion metric tons by 2020, encouraged by the long-awaited recovery in the construction sector and the ongoing focus on the development of innovative steel solutions.

Referred to as one of the most essential engineering materials, steel finds use in various applications ranging from buildings and infrastructure construction to machinery and metal goods manufacturing. In the near-to-mid-term period, the positive outlook for manufacturing and the gradual improvement in housing and infrastructure projects will help spur demand for steel. In developing markets, growth will be led largely by population growth and urbanization trends. Stable production forecasts for the automobile industry will also fuel global consumption of steel. Surging demand for lightweight, fuel efficient vehicles is driving growth of advanced high-strength steel. The sharp and prolonged decline in global oil prices is wielding an uneven impact on demand patterns for steel across the world. Declining oil prices and CAPEX cutbacks in the oil & gas sector are impacting consumption of steel in the energy sector. Demand is expected to be flat for steel pipes in the oil & gas sector in the near-term, given the falling oil prices. In addition, the persistent overcapacity issues and the slowdown of the Chinese economy are adding to the challenges faced by the steel industry. Steel manufacturers in the United States are facing an especially uncomfortable market environment as the country steps up cheap steel imports from China. Prompted by soft domestic consumption patterns, China is pushing its surplus steel into the international market, driving down global prices.  

As stated by the new market research report on Steel, China represents the largest market worldwide, supported by over a decade long economic growth and prosperity, rapid industrialization and urbanization, and expansion of the domestic manufacturing industry. Asia-Pacific ranks as the fastest growing market with a CAGR of 5.4% over the analysis period. Although China continues to remain a major consumer of steel, the void created by the country’s slowing economy is forecast to be filled by emerging opportunities in India, Vietnam, South Korea, and Taiwan. The electric arc furnace method of producing steel continues to gain strength, causing a change in the manufacturing scenario which has been dominated by the basic oxygen furnace method. Increasing signs of stable recovery in the Eurozone, growing confidence about the Indian market and the expected surge in steel consumption in certain ASEAN and MENA regions are some of the key factors expected to drive consumption of steel in future.

Major players covered in the report include Anshan Iron and Steel Group Corporation, ArcelorMittal S.A., Baosteel Co., Ltd., EVRAZ NTMK, Gerdau S.A., Hebei Iron and Steel Group Company Limited, Jiangsu Shagang Group, Nippon Steel & Sumitomo Metal Corporation, Nucor Corporation, POSCO, Riva Group, Tata Steel Group, Tenaris S.A., ThyssenKrupp Steel Europe, United States Steel Corporation, among others.

The research report titled “Steel: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections in Thousand Metric Tons for all major geographic markets such as US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, Turkey, and Rest of Europe), China, Asia-Pacific (India, South Korea, Taiwan and Rest of Asia-Pacific), Middle East (Iran, Israel, Saudi Arabia, Syria, UAE, and Rest of Middle East), Latin America (Argentina, Brazil, Chile, Colombia, Mexico, Venezuela, and Rest of Latin America) and Africa. Key end-use sectors analyzed include Construction, Transportation, Machinery, Metal Goods, Household Appliances, and Others (Oil & Gas among Others). 

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