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Steel - Global Market Trajectory & Analytics

  • ID: 338732
  • Report
  • April 2021
  • Region: Global
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • ArcelorMittal S.A.
  • EVRAZ plc
  • HBIS Group
  • JFE Steel Corporation
  • Nucor Corporation
  • Riva Group

Unsettled by the Pandemic, Steel Industry to Post a -5.5% Reduction in Consumption in 2020

With all major end-use sectors collapsing like a house of cards, global steel market is expected to slump by -5.5% in the year 2020 highlighting a 6.5 million metric ton erosion in consumption. Thereafter the market is expected to recover and reach 156.1 million metric tons by the year 2027 trailing a post pandemic CAGR of 5% over the analysis period 2020 to 2027.The construction industry which accounts for 45.7% of world steel consumption is facing the brunt of labor migration, capital constraints and disruptions in construction material supply chain. Diversion of government funds from infrastructure development to pandemic firefighting has additionally impacted the construction industry, which is dependent to a large extent on infrastructure projects. In several countries, all non-essential construction projects have been put on hold with the exception of building emergency hospitals for COVID-19 care. Residential construction is taking a beating with millions of people worldwide pushed into unemployment as businesses either go bankrupt or layoff workforce to stay afloat. Unemployment rates are climbing to worrisome levels in both developed and developing economies alike. For the construction industry, this brings bad news as new housing starts go into deep freeze. The long shadow of the coronavirus is thwarting home-buying plans of consumers. With countries seeing a second wave of infections, the Covid-19 resurgence is likely to undermine the much awaited chances of a V-shaped recovery. Challenges of maintaining social distancing at construction sites is resulting in difficulties in obtaining project clearances from regulatory authorities. Ensuring raw material availability still remains a challenge for most construction contractors.

The machinery industry which is accounts for 18.1% share of global steel consumption is also feeling the weight of falling industrial output and a crumbling manufacturing sector. The worst affected industry in this pandemic driven crisis is manufacturing with its complex supply chains, labor intensive processes, and interdependencies. Division of labor, modular manufacturing strategies, outsourcing to reduce costs and increase the efficiency, consistency, and quality of each operations, have made the manufacturing sector most vulnerable amid the lockdown restrictions. An indication of the grim state of affairs is the fact that global manufacturing PMI is already declining and will fall to an estimated all-time low of 35.4 points in 2020 as compared to 53.8 in 2019. This indicates severe contraction of manufacturing activity including new orders, production, employment, supplier deliveries, inventories, customers` inventories, commodity prices, order backlog, new export orders, and imports. Global industrial output is plummeting sharply with the U.S posting steep declines of -16.5% & -15.2% in March & April 2020. The slumping demand for machine tools in response to these challenges is impacting steel demand and consumption.

Transportation and household appliances, which together accounts for 19.2% of world steel consumption ,are also feeling the heat of the crumbling aviation, automobile, ship building and consumer durable goods industry. The aviation industry has been brought down to its knees hurt by grounded flights as countries across the world sealed their borders amid stringent travel restrictions imposed in 1Q of 2020. Several airline companies across the world, especially low cost carriers, have already voiced concerns about going bankrupt without timely aid and financial rescue measures from the government. Widespread travel bans and sealing up of international and regional borders by governments worldwide to contain the spread of the disease has been a significant financial blow for airline operators. Even as governments cautiously begin to ease restrictions in 2Q of 2020, the rising second wave of infections is doing but little to bring hope to the aviation industry. With all non-essential travel coming to a halt and with the tourism industry virtually decimated a longer-term impact is more than likely to be felt by the aviation industry. The industry which suffered over US$32.6 billion in April 2020 will likely see the losses mount to over US$120.2 billion by December 2020.

With the world economy now caught in the worst recession of its kind, the impact is no more a short-term crisis. Staff downsizing and capacity reductions will now be rampant as airlines struggle to reduce costs and stay afloat. Under this scenario, a hold back on fleet expansion plans and cancellations of new aircraft purchase orders is impacting steel consumption. Similarly with world trade expected to fall by 20% to 30%, the disruptions in sea trade and falling shipping service revenues is taking its toll on demand for ocean going vessels. Chinese massive shipbuilding industry, the largest in the world received only one new order in February 2020.

Household appliances and automobile sales and production are also plummeting due to falling consumer confidence levels. Over 33 million Americans are unemployed and the share of population unemployed dropped sharply from a recent high of 62% in January 65.7% in July 2020. With the labor market in doldrums, consumer spending is plummeting. The loss in consumer confidence and erosion of household wealth and discretionary spending will impact virtually every industry and business worldwide. The COVID-19 pandemic has therefore pushed consumers to conserve cash. With unemployment rates rising amid the virus induced economic crisis, consumers are cutting spending budgets. Social outlook against this background remains grim with households expected witness erosion in wealth. Personal financial outlook, community, economy, job security confidence, purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. The loss in consumer confidence and erosion of household wealth and discretionary spending will impact virtually every industry and business worldwide. As discretionary funds are used to purchase consumer electronics, household appliances and automobiles, demand highly correlates with GDP. The -3% global GDP estimated for 2020 is therefore aggravating market woes. Excluding electronic hardware required for work-from-home (WFM), demand for all other consumer electronics are declining sharply. Smartphones, TVs, smart speakers, automobiles, and smart watches, among others have all recorded declines in retail sales. The auto industry is also facing an uncertain future amid the global recession with the reduction in automobile sales expected to be steepest in the year 2020 as compared to other recessions of the past.

Select Competitors (Total 157 Featured):

  • 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 Group Co., Ltd
  • Tata Steel Group
  • Tata Steel Europe Ltd.
  • thyssenkrupp Steel Europe AG
  • United States Steel Corporation
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • ArcelorMittal S.A.
  • EVRAZ plc
  • HBIS Group
  • JFE Steel Corporation
  • Nucor Corporation
  • Riva Group
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • COVID-19 Crisis Induced Demand Erosion to Hamper World Steel Industry in 2020
  • Prevailing Weak Global Economic Environment & Negative Tide in GDP Forecasts Strongly Discourage Steel Industry
  • Exhibit 1: World Economic Growth Projections (Real GDP, annual % Change) for 2019, 2020 & 2021
  • Industrial Activity to Remain Subdued in the Immediate Term, Inducing Weakness into Steel Market
  • Exhibit 2: Global PMI Index Points for the Years 2018, 2019 & 2020
  • Exhibit 3: Business Climate Indicator in the Euro Area for the Period June 2019 to May 2020
  • Exhibit 4: Business Confidence Index (BCI) Points for 3Q 2019, 4Q 2019, 1Q 2020, & 2Q 2020
  • COVID-19 Crisis Further Amplifies Overcapacity & Excess Inventory Issues
  • Despite COVID-19 Crisis Curtailing Growth in the Short-Term, Long-Term Prospects Remain Optimistic for the World Steel Industry
  • Critical Importance of Steel in Every Aspect of Human Life to Create Conducive Environment for Future Growth
  • Properties of Different Types of Steel
  • A Snapshot of Steel End-Use Sectors
  • Regional Analysis
  • Contraction in Demand across Developed Economies
  • China Holds the Key for Future Growth of Steel Industry
  • Steel Demand to Drop in Developing Economies before NoTable Recovery in 2021
  • World Steel Industry: Production, Exports & Imports
  • Steel Production Soars in 2017-2019 Period
  • China Remains the Dominant Steel Exporter in 2019
  • Exhibit 5: Leading Steel Exporting Countries (2019): Exports (in Million Metric Tons) for China, Japan, South Korea, Russia, EU-28, Germany, Turkey, Italy, Belgium, Ukraine, France, India, Brazil, Taiwan, and Netherlands
  • EU Continues to be the Top Steel Importer
  • Exhibit 6: Leading Steel Importing Countries (2019): Imports (in Million Metric Tons) for EU (28), United States, Germany, Italy, Thailand, South Korea, China, Vietnam, France, Indonesia, Mexico, Belgium, Turkey, Poland, and Spain
  • Impact of US Steel Tariffs on World Steel Trade: A Brief Review
  • Competitive Scenario
  • Leading Players in the World Steel Market
  • Exhibit 7: Top 20 Steel Producing Companies (2019)
  • Exhibit 8: Leading Steel Producing Companies (2019): Percentage Share Breakdown by Volume Production
  • Globalization & Rationalization Remain the Core Surviving Strategies for Steel Firms
  • Steel Firms Emphasize Restructuring of Operations
  • Moving Closer to Customers: The New Strategic Initiative
  • Innovations & Product Differentiation Grow in Focus among Vendors
  • Consolidation Picks up Pace
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS
  • WORLD BRANDS
3. MARKET TRENDS & DRIVERS
  • Steel Industry Prospects Strongly Reliant on Global Construction Industry Scenario
  • Prevailing Depressive Scenario in the World Construction Sector Weakens Momentum in the Steel Industry
  • Exhibit 9: World Construction Industry (in US$ Trillion) for the Years 2017, 2019 & 2022
  • Exhibit 10: Global Value of Megacity Construction Projects (US$ Billion) in 2019
  • Current Prospects Remain Lackluster for Steel in Automotive Industry
  • Exhibit 11: World Automobile Production in Million Units: 2008-2022
  • Ongoing Shift towards Lighter Weight Vehicles to Drive Future Demand for Automotive Steel
  • Exhibit 12: Breakdown of Automotive Material Mix: 2020
  • Exhibit 13: Lightweighting Trend in Auto Parts: Average Weight of a Passenger Car (In Kgs) for the Years 1990, 2000, 2006, 2016 & 2019
  • Emissions Regulations Landscape in Major Countries/Regions
  • Steel Vs Aluminum: The Dilemma Continues for Better Lightweight Automotive Material
  • Critical Importance of Steel in Machinery Manufacturing Augurs Well for Future Growth
  • Exhibit 14: Manufacturing Industry Bites the Dust Severing All Planned Digital & Electronic Plant Upgrade Investments: Global Manufacturing PMI Index Score January 2020 to May 2020
  • Exhibit 15: Manufacturing PMI Indices for Select Asian Countries for Jan 2020 to May 2020
  • High Performance Steel Grades Gain Importance in Machinery Manufacturing
  • Relevance of Steel in Household Appliances & Metal Goods Domains Bodes Well for Future Growth
  • Metal Cans: Niche End-Use Segment
  • Sluggish Trajectory in Oil & Gas Sector to Impede Momentum in the Short-Term
  • Exhibit 16: Global Brent Crude Oil Price Trends in US$/barrel: May 2019 -June 2020
  • Exhibit 17: Global Daily Crude Oil Demand in Million Barrels for the Years 2015 through 2020
  • Anticipated Recovery in Oil & Gas Sector in 2021 to Generate Parallel Opportunities to Steel Industry
  • Global Oil & Gas E&P Industry Spending (2015-2021E)
  • High Volume Opportunities in Shipbuilding
  • Carbon Steel Seeks to Widen Addressable Market
  • Exhibit 18: Global Finished Steel Market by Category (2020): Percentage Breakdown of Production for Carbon Flat Steel, Carbon Long Steel, Specialty Long Steel, and Stainless Flat Steel
  • Demand for Stainless Steel Gains Momentum
  • Stainless Steel Continues to Reign Appliances Market
  • Growing Use Case in Diverse Applications Widens Future Prospects
  • Exhibit 19: World Stainless Steel Market (2020): Percentage Breakdown of Volume Demand by Region
  • Exhibit 20: World Stainless Steel Market (2020): Percentage Breakdown of Share by End-Market
  • Exhibit 21: Global Stainless Steel Market (2020): Percentage Breakdown of Production by Region
  • Exhibit 22: Global Stainless Steel Market (2020): Percentage Breakdown of Production by Segment
  • Exhibit 23: Global Stainless Steel Long Products Market (2020): Percentage Breakdown of Share by Product Group
  • Exhibit 24: Global Stainless Steel Market (2020): Percentage Breakdown by Product
  • Demand for Special Long Steel on the Rise
  • Exhibit 25: Global Steel Demand (2020): Percentage Breakdown of Consumption by Product Shape
  • Exhibit 26: Global Long Steel Market (2020): Percentage Breakdown by Product
  • Exhibit 27: World Specialty Long Steel Market (2020): Percentage Breakdown of Production by Category
  • Widening Role of Electric Arc Furnace (EAF) in Steel Production Landscape
  • Exhibit 28: Steel Production by Manufacturing Process in Select Countries (2019)
  • Steel Industry Persists with its Energy Conservation Drive
  • Environmentally Friendly Approach Gains Focus
  • Steel Scrap Recycling: Robust Approach for Energy Conservation
  • Population Growth & Urbanization Favor Future Growth in Steel Market
  • Exhibit 29: World Urban Population in Million and as Percentage of Total Population for the Period 1950-2050P
  • Steel Prices: Weakness Prevails
  • Demand Erosion & Raw Material Prices Impact Steel Prices
  • Steel: An Overview
  • Steel Classification
  • Exhibit 30: Carbon Steels - Alloying Elements of Steel
  • Steel Manufacturing Process
  • Refining and Casting
  • Forming and Finishing
  • Steel Products (Semi-Finished & Finished)
  • A Brief Note on Major End-Use Segments
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • COVID-19 Impact: US Steel Industry to Remain Jittery over Near-Term
  • Strong Focus on Steel Quality Gives Competitive Edge to US Steel Industry
  • USMCA: A Major Milestone for North American Steel Industry and Supply Chains
  • COVID-19 Affects Steel Prices in the US
  • Construction Industry - An Overview
  • COVID-19 Casts Shadow on the US Construction Sector
  • Delayed Project Completion due to Holdup in Material Availability
  • Exhibit 31: Projected Growth (%) of the US Construction Market over the Period 2016-2024 by Sector
  • Exhibit 32: Number of States Limiting the Construction Industry due to COVID-19 as of April 2020
  • Exhibit 33: US Construction Spending in US$ Billion: Jan 2012 - Jan 2020
  • Housing Projects Scenario
  • Exhibit 34: Key Indicators for US Residential Construction Market
  • Exhibit 35: NAHB/Wells Fargo Housing Market Index: April 2011 - April 2020
  • Exhibit 36: New Privately-Owned Housing Units (in ‘000) Authorized in Permit-Issuing Places, and Completed
  • Transportation and Automotive Sector: A Key Market for Steel
  • COVID-19 Brings Vehicle Production to a Grinding Halt
  • Commercial Transportation Sector Hit by the Pandemic: The US Trucking Industry Sees Hope Despite the Imminent Recession
  • Exhibit 37: US Vehicle Production (2013-2019E) (in Thousand Units)
  • Styled Steel Wheels and Steel Cords Make Inroads
  • Cutback in Shale Activity Impacts Steel Market
  • Changing Energy Mix & Demand for Steel LDPs
  • Demand for Steel Scrap Drops amid COVID-19 Pandemic
  • Exhibit 38: US Crude Steel Market (2019): Percentage Breakdown of Volume Production by Type of Process - Electric Furnace and Oxygen Blown Converter
  • Competition
  • CANADA
  • JAPAN
  • Brief Market Overview
  • Exhibit 39: Leading Players in the Japanese Steel Market (2019): Percentage Breakdown of Production for Nippon Steel, JFE Steel and Others
  • CHINA
  • Surprising Recovery in China amid COVID-19 Pandemic to Boost Steel Fortunes
  • Faster Resurgence in China to Offset Shrinking Global Steel Demand
  • Steel Production to Drop over Medium-Term
  • Exhibit 40: Steel Production in China (2011-2019) (in Million Tons)
  • Exhibit 41: Chinese Stainless Steel Production (2019): Percentage Share Breakdown of Production by Type
  • Exhibit 42: Capacity Utilization (in %) for Steel Production in China (2008-2019)
  • Capacity Cuts, Pollution Reduction and Automotive and Construction Sectors Drive Steel Prices in China
  • Construction: The Largest Market for Steel
  • Automotive Industry Drives Demand for High-Strength Steel
  • Impact of the Pandemic on the Chinese Automotive Industry
  • Growing Demand for Bridge Steel Structure Augurs Well for the Market
  • Focus Grows on High Grade Steel
  • Industry Embraces Technological Innovation in Production
  • EUROPE
  • COVID-19 Exacerbates Already Challenging European Steel Market Situation
  • Steel Industry - An Integral Part of European Economy
  • EU Steel Industry
  • Exhibit 43: Finished Steel Production in EU by Type (2019): Percentage Breakdown of Volume Production by Type
  • Recovery in Construction Activity Post COVID-19 Pandemic to Sustain Growth in Demand
  • Challenges Facing the Market
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • TURKEY
  • REST OF EUROPE
  • ASIA-PACIFIC
  • COVID-19 Triggers Mixed Regional Performances for Steel Markets across Asia
  • INDIA
  • Steel Demand in India to Grow Marginally after Deep Cuts in Output during Lockdown
  • SOUTH KOREA
  • TAIWAN
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • BRAZIL
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • AFRICA
IV. COMPETITION
  • Total Companies Profiled: 157
Note: Product cover images may vary from those shown
  • 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 Group Co. Ltd
  • Tata Steel Group
  • Tata Steel Europe Ltd.
  • thyssenkrupp Steel Europe AG
  • United States Steel Corporation
Note: Product cover images may vary from those shown
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