The global finished steel products market is estimated to witness a healthy growth, at an estimated CAGR of over 3%, over the forecast period. The major factor driving the growth of the market studied is growing demand from construction industry.
- Availability of substitutes and changing properties with temperature are likely to hinder the markets growth.
- Increasing availability of steel scrap is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Increasing Usage in the Transportation Industry
- Steel has been an efficient material of choice for automakers, globally. Some of the characteristics that increase the demand for steel products from automotive industry include high strength, safety, and relatively low costs compared to other materials.
- However, the increasing need to reduce the weight of an automobile is hindering the growth in the consumption of steel products in automotive industry. This is to affect the consumption of steel in the coming years.
- In 2019, the automotive production witnessed a decline owing to trade war pf US-China and other political reasons. This is expected to continue in the first half of 2020, owing to the weak sales in second half of 2019. However, the automotive industry is likely to recover by the end of 2020.
- In addition, the development of electric vehicles may continue to gain momentum in the upcoming years especially in Europe, China. and United States, where many government programs are promoting a move away from fossil fuels owing to the various environmental concerns.
- Owing to all these factors, the market for finished steel products is likely to grow across the world during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy, in terms of GDP. China is one of the fastest emerging economies and has become one of the biggest production houses in the world, today. The country’s manufacturing sector is one of the major contributors to the country’s economy.
- China is the largest manufacturer of automobiles in the world. The country’s automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products, in order to ensure fuel economy, and to minimize emissions (owing to the growing environmental concerns due to mounting pollution in the country).
- The production is expected to reach 30 million units by 2020, owing to the “Made in China 2025” initiative support in upgrading the existing low-cost mass production to higher value-added advanced manufacturing. “Automobile Mid and Long-Term Development Plan”, was released in 2017, with an objective to make China a strong auto power in the next ten years.
- China’s 13th Five Year Plan started in 2016, as it was an important year for the country’s engineering, procurement, and construction (EPC) industry. In addition, the country ventured into new business models domestically and internationally, during the year. Although the construction sector slowed down after 2013, it is still a major contributor to the GDP of the country. The China’s construction industry developed rapidly in the recent past, due to the central government’s push for infrastructure investment, as a mean to sustain economic growth.
- Due to all such factors, the market for finished steel products in the region is expected to have a steady growth during the forecast period.
The finished steel products market is partially consolidated in nature. Some of the major players in the market include ArcelorMittal, HBIS GROUP, Baosteel Group, Tata Steel, and JFE Steel Corporation, among others.
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