Global Steel Industry
The global steel industry is expected to grow at a modest rate over the forecast period 2019-2025. Pivotal factors that augment the market growth include rising demand for steel in various end-use industries including construction, automotive, aviation and marine, and yellow goods and mining equipment. Data published by the World Steel Association reflect that the global steel demand registered a growth of 1.4% during 2018 and is further estimated to grow in the near future. Moreover, the aforementioned society also suggests that global steelmaking capacity, in nominal crude terms, remained nearly unchanged in 2018, following declines in 2016 and 2017. The report analyzes the global steel industry on the basis of processing type, end-use industry, and geography.
Steel production falls amid COVID-19 outbreak
The global steel industry has been hit hard by the recent COVID-19 outbreak as the implementation of nationwide lockdown across nations has resulted in a steep decline in the demand for steel. Steel is extensively used in industry verticals including automotive, construction, aviation & marine, and yellow goods and mining equipment. The virus spread has taken a toll on global steel demand as leading end-users such as automotive industry curtailed production. Moreover, there are also instances where buyers are canceling their orders as their production remains halted following the lockdown. The US steel industry is estimated to hit a hard brake by the pandemic spread as the demand has fallen significantly and domestic mills cut production.
The US steel industry has reported a decline in production of around 12.7% year-on-year in the week ending 28th March 2020. Moreover, the capacity utilization rate also fell to as low as 71.6% during the same period. Incidentally, the US Department of Commerce imposed Section 232 tariffs in order to increase the domestic industry’s capacity utilization rate. The Trump government has managed to decline the country’s steel imports in recent years by imposing tariffs. The US steel imports have fallen sharply in 2018 and 2019 and also in the first two months of 2020.
Not only the US, but the impact of the COVID-19 outbreak is also seen in the Indian steel industry. Following the nationwide lockdown as imposed in the country by the Indian government, the demand for steel has reduced substantially. Owing to this, Indian steelmakers such as Steel Authority of India (SAIL) and Tata Steel have reduced their output by nearly 50%. These two steel makers contribute around 20% to India’s total steel production. Tata Steel integrated facilities in the Indian city of Jamshedpur and Kalinganagar and subsidiaries Tata Steel BSL and Tata Steel Long Products have started reducing production levels while operations in the downstream facilities have been suspended and put on care and maintenance mode.
OMR Global Recently Published Report on:https://www.omrglobal.com/industry-reports/steel-industry-market
The Report Covers
- Comprehensive research methodology of the global steel industry.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the global steel industry.
- Insights about market determinants that are stimulating the global steel industry.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Market Segmentation
Processing Type
- Hot Rolled Steel
- Cold Rolled Steel
- End-Use Industry
- Construction
- Automotive
- Aviation & Marine
- Yellow Goods & Mining Equipment
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