Construction Steel Market in Poland 2008: Development Forecasts for 2009-2011

Key Findings:

- In the whole of 2008, Poland will produce approximately 10 million tonnes of pig iron.
- With approximately 300 kg per capita consumption, Poland is slowly closing in on the EU average of 400 kg.
- Construction steel accounts for approximately 70% of Poland’s total steel output.
- The Polish market of steel distribution is more dispersed than the analogous markets of Western European countries.

The report is a comprehensive analysis of the construction steel market in Poland. It describes the current market situation, market trends and forecasts for 2009 – 2011. The analysis of future trends looks at the general macroeconomic situation, the overall construction sector and the construction steel market in Poland.

The publication looks at the current market conditions on the Polish construction market, new investments and modernisation works, and construction prices. Moreover, the discussion of the construction steel market looks at the main market drivers, such as demand and supply, foreign trade indicators, prices and market value. The report gives a strategic view of the market’s distribution channels and identifies the main groups of steel products used by the construction sector.

Additionally, the report contains detailed profiles of 20 key players on the construction steel market, mostly producers and distributors.

The directory of companies operating on the Polish construction steel market provides the following information:

- company name
- contact information
- net revenues and profits
- shareholder structure
- distribution network
- product assortment
- brief description.

The report is based on an analysis of information from the following sources:

- Our data, analysis and forecasts
- general access sources: trade press, general economic publications, analytical reports, documents published by public institutions
- information from market players
- interviews with experts from the construction steel market.

The report provides valuable insight for:

- top management and marketing departments of companies either already active or considering launching operations on the construction steel market in Poland
- producers and distributors operating on the Polish construction steel market
- companies engaged in construction and those active in the production and distribution of construction steel in the region
- consultants and analysts that provide advice and intelligence to governmental and business organizations, as well as those seeking investment opportunities.

A word from the author

”The construction sector, the largest buyer of steel in Poland, following dynamic growth in 2006 and 2007, slowed a bit mid-2008, which was immediately reflected in lower demand for construction steel and, as a consequence, in a drop in construction steel prices. The slackened demand is the offspring of numerous delays in the execution of large infrastructure investments and lower-than-anticipated number of new real estate developments.

We believe this to be a temporary phenomenon. Over the next few years, along with further growth of the construction sector, powered by civil engineering works, the order portfolios of steel works as well as distributors will bulk up to fuel domestic demand for and consumption of construction steel.“

Bartlomiej Sosna, Construction Analyst SHOW LESS READ MORE >

Methodology

Executive summary

The construction sector in Poland
The value and growth of the market
Value added in construction
Construction and assembly output
Construction prices
Construction climate

The steel and steel products market in Poland
The Polish steel market against the international background
The size and growth of the steel market in Poland
Construction steel market in Poland 2008 – Development forecasts for 2009-
The demand and supply sides of the Polish steel market
Prospects for the growth of demand for steel products in Poland
The volume and structure of the supply of steel products produced by the Polish steel making industry
Growth prospects for the supply side in the steel sector in Poland
Prices of steel products
Foreign trade
Exports and imports of steel structures
Distribution channels
The main groups of steel products offered to the construction industry
Long products
Semi-finished products and billets
Sections and heavy bars
Light and medium steel sections
Wire rod and ribbed bars (light and medium bars)
Cold formed sections
Wires and drawn products
Sheet sections and rails
Crash barriers
Flat products
Hot rolled steel sheets and plates
Transformer plates
Cold rolled sheets and plates
Tubes
Welded tubes
Seamless tubes
Steel structures

Development forecasts for 2009-2011
Macroeconomic forecasts
Forecasts for the construction industry
Forecast for the construction steel market
Market consolidation
Steel pricing trends
Trends in the application of steel
Substitute products
CO2 emission allowances

Profiles of producers of steel for the construction industry operating in Poland
ArcelorMittal Poland S.A.
CMC Zawiercie S.A.
Celsa Huta Ostrowiec Sp. z o.o.
ISD Huta Czestochowa Sp. z o.o.
Alchemia S.A.
TF Silesia Sp. z o.o.
The State Treasury
The possibility of new players entering the market
Construction steel market in Poland 2008 – Development forecasts for 2009-20

Profiles of producers of steel for the construction industry operating in Poland
Zlomrex S.A.
ThyssenKrupp Energostal S.A.
Pruszynski Sp. z o.o.
HMB Budmat
Bowim S.A.
Bodeko Sp. z o.o.
Arcelor Dystrybucja Polska Sp. z o.o.
Stalprofil S.A.
Konsorcjum Stali S.A.
Grupa Polska Stal S.A.
Sambud-2 Sp. z o.o.
Stalprodukt S.A.
Nova Trading S.A.
Stalexport S.A.

List of graphs
Construction and assembly output in Poland, 2000-2011
Size and y-o-y growth of the construction market in Poland (PLN bn and %), 2000-2008
Capital expenditure by companies on buildings and structures in Poland, 2000 – Q1-Q3 2008
Real GDP growth in Poland (%), 2002 – Q1-Q3 2008
Real changes in construction and assembly output in Poland (%, y-o-y), January 2007 – October 2008
Construction and assembly output in Poland, by type of building, 2007 – Q1-Q3 2008
Sales of construction and assembly output per capita in Poland (PLN), 2007
Inflation rate and prices in construction and industry in Poland (%, y/y), January 2000-October 2008
The overall business climate indicator in the Polish construction sector, 2005-November 2008
What is the main reason of the downturn in the construction market?
Obstacles to doing business in the construction market
Global crude steel production (million tonnes), 1995-2007
Major steel-producing countries (million tonnes), 2007
Global crude steel production by region (%), 2007
Global steel consumption (%), 2007
Global steel production index (kg per capita), 2007
The structure of steel consumption in Poland (%), 2005-2007
The production of crude steel in Poland by technology (million tonnes), 2003-2007
Crude steel production in Poland (million tonnes), 2003-2008
Apparent consumption of steel products in Poland (million tonnes), 1992-2007
Shares of steel products in apparent consumption in Poland, 1992-2007
Prices of key steel products in Poland, HEB 200 section, September 2006-December 2008
Prices of key steel products in Poland, S235JR2 (St3S) hot rolled sheet, September 2006-December 2008
Prices of key steel products in Poland, BST 500 ribbed bars (12mm), September 2006-December 2008
Polish imports and exports of crude steel (million tonnes), 2004-2007
Apparent consumption of steel in Poland by country of origin (%), 2006
Steel production structure in Poland (%), 2007
Apparent consumption of steel in Poland by type of product (%), 2007
Apparent consumption of steel in Poland by type of product (million tonnes), 2003-2007
Production of cold rolled steel products in Poland (’000 tonnes), 2003-2007
Production of steel tubes and hollow sections in Poland (‘000 tonnes), 2003-2007
Construction and assembly output in Poland, 2000-2011
Global steel production (million tonnes), 1900-2020
The production of crude steel in Poland (million tonnes), 2003-2011
The consumption of crude steel in Poland (million tonnes), 2003-2011
The shares of top five steel distributors in Poland (%), 2006-2010
The value of the steel distribution market in Poland (PLN bn), 2006-2008
The global steel price index (April 1994=100), 1994-2008
The use of steel structures in Poland, 2008
Governmental allocation of annual CO2 emissions allowances in Poland by sector (million tonnes), 2008-2012
CO2 emissions globally, 1990-2005
CO2 emissions globally, 2030

List of tables
Forecasts for the main economic indicators in Poland for 2008-2010
Top crude steel producing countries (million tonnes), 2004-2007
The largest producers of crude steel globally (million tonnes), 2007
The output of Polish steelworks (million tonnes), 2001-2007
Total production of flat products, hot rolled long products, steel tubes and hollow sections in Poland (‘000 tonnes), 1997-2006
MPP (Maximum Possible Production) capacities in the Polish steel sector in terms of liquid steel and other specific groups of products in 2006
Foreign trade between Poland and Turkey ($ million, product groups of over $10m), January-October 2007
Forecasts for the main economic indicators in Poland for 2008-2010
Contracts of over €50m in value signed in Poland in the period May-November 2008
The main producers of steel in Poland, 2008
Sales revenue and net profit of steel distribution companies in Poland (PLN ‘000), 2007

Key sections

Section one is an overview of the situation on the construction market in Poland. It specifies market size and year-on-year market growth, economic climate, state of investments and modernisation works, and prices on the construction market.

Section two focuses on the construction steel market in Poland. The current situation, market size, development trends, prices, main product categories and distribution channels are identified. This section also looks at the market via supply and demand drivers and presents foreign trade indicators.

Section three gives a strategic view of the future market situation, providing forecasts for 2009-2011 for the macroeconomic situation, construction sector in Poland, engineering construction and market consolidation trends

Section four presents detailed profiles of producers operating on the construction steel market in Poland, identifying the main product categories, distribution channels and revenues.

Finally, section five is a comprehensive description of distributors active on the Polish construction steel market. The key market players are detailed by product range, distribution network and shareholder structure.

- Alchemia S.A.
- Arcelor Dystrybucja Polska Sp. z o.o.
- ArcelorMittal Poland S.A.
- Bodeko Sp. z o.o.
- Bowim S.A.
- Celsa Huta Ostrowiec Sp. z o.o.
- CMC Zawiercie S.A.
- Grupa Polska Stal S.A.
- HMB Budmat
- ISD Huta Czestochowa Sp. z o.o.
- Konsorcjum Stali S.A.
- Nova Trading S.A.
- Pruszynski Sp. z o.o.
- Sambud-2 Sp. z o.o.
- Stalexport S.A.
- Stalprodukt S.A.
- Stalprofil S.A.
- TF Silesia Sp. z o.o.
- The State Treasury
- ThyssenKrupp Energostal S.A.
- Zlomrex S.A.