The Global Steel Market is Projected to Reach 1.74 Billion Metric Tons by 2024

India and other Emerging Markets to Counterbalance Slowdown in Chinese Steel Consumption, 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 Steel market is projected to reach 1.74 billion metric tons by 2024, driven by increasing consumption in India, Russia, Turkey and other emerging markets, even as Chinese consumption slows down.

The steel industry is one of the most basic industries around the world, and is a general indicator of economic health, as production and consumption of steel largely mirrors macroeconomic trends. Steel is the most widely used metal in the world, and finds use in varied applications such as construction, automotives, ship building, machinery, as well as daily use products such as metal goods and household appliances. As such, demand for steel moves in line with industrial as well as consumer trends. However, consumption patterns vary by region, with emerging markets witnessing higher intensity of steel consumption owing to the varied construction and infrastructure projects. On the other hand, developed markets have a relatively lower dependence on steel usage in the construction sector.

China has single handedly been the driver of the steel market for about two decades. The country is the largest producer and consumer of Steel in the world. The rapid pace of development in China has resulted in the domination of the Chinese steel industry, with the country accounting for about 50% of global production and consumption of steel. The fast pace of growth has also resulted in huge over capacity of an estimated 400 million metric tons, about three times the total production capacity of Japan, the next largest producer of steel. Given that China is the leading steel market across the world, demand and production trends in the country play an influential role in shaping the dynamics of the international steel industry. While capacity has been growing, Chinese steel demand has been slowing in recent years, owing to a paradigm shift in consumption patterns in the country, leading to huge surplus for exports, which have affected steel prices across the world. The Chinese government has been proactively pursuing capacity rationalization through weeding out inefficient and polluting capacity, as well as encouraging consolidation in the industry. These measures have been able to positively affect steel prices across the globe.

While the Chinese growth story has lost steam, and Chinese steel production and consumption is expected to decline in future, significant investments in developed markets for infrastructure upgrades and development, as well as increasing demand from developing markets is expected to drive steel demand in future, and resultantly provide stable opportunities for steel suppliers. India, in particular is expected to be the major growth driver in future, counter balancing declines in China. India is expected to emerge as the second largest producer of steel in the immediate future, and aims to have steel production capacity of about 250-300 million metric tons by the year 2030.

Construction and Transportation industries are the primary consumers of steel, accounting for nearly two-thirds of global steel consumption. Both construction and transportation industries are bellwethers of economy, and are hugely influential in driving steel consumption. The two industries are also highly susceptible to macroeconomic trends, making the steel industry mirror the broader economy.

As stated by the new market research report on Steel, China represents the largest market worldwide, followed Asia-Pacific (excluding Japan and China) region. However, Chinese consumption of Steel projected to decline over the analysis period. India is expected to be the next growth driver of global Steel consumption, and alleviate the expected decline in Chinese consumption. Driven by India, Asia-Pacific (excluding Japan and China) region is forecast to emerge as one of the fastest growing market, with a CAGR of 4.1% over the analysis period. Other emerging markets, such as Turkey, Russia, and Latin American and Middle East countries are also expected to drive consumption of Steel.

Key players in the market include Ansteel Group Corporation Limited, ArcelorMittal S.A., China Baowu Steel Group Corporation Limited, EVRAZ plc, EVRAZ NTMK, Gerdau S.A., HBIS Group, HYUNDAI Steel Company, JFE Steel Corporation, Jiangsu Shagang Group, Nippon Steel & Sumitomo Metal Corporation, Nucor Corporation, POSCO, Riva Group, Shandong Iron and Steel Group Co. Ltd., Shougang Corporation, Tata Steel Group, Tata Steel Europe Ltd., thyssenkrupp Steel Europe AG, and 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, growth drivers, innovations and launches, and strategic industry activities of major companies worldwide. The report provides market estimates and projections in thousand metric tons for all major geographic markets including the 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), the Middle East (Iran, Israel, Saudi Arabia, UAE, Rest of Middle East), Latin America (Argentina, Brazil, Chile, Colombia, Mexico and Rest of Latin America), and Africa (Algeria, Egypt, Morocco, Nigeria, South Africa, and Rest of Africa). End-Use industries analyzed include Construction, Transportation, Machinery, Metal Goods, Household Appliances, and Others.

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