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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