Steel Market Analysis
The steel market is set to witness a spend growth of over USD 130 billion with spend momentum to accelerate at a CAGR of more than 3% between 2019-2024. The automobile industry is exhibiting a high demand for AHSS, a lighter variant of the usual steel. It can reduce the overall weight of the vehicle by half, thereby minimizing fuel consumption. The increase in infrastructure developments in the emerging nations is propelling demand in the structural steel and stainless-steel markets which is contributing to the overall spend momentum in the global steel market.
Top Spending Regions in the Steel Market
APAC is dominating the global steel market and is accounting about 65% of the consumption of steel products.
APAC
High investments done in both private and public infrastructure are propelling demand in the steel market at an exponential rate. Construction, automobile, and the shipbuilding are among the largest end-user segments in the steel market in APAC.
Europe
The demand from the automotive, construction, and capital goods sectors is driving demand growth in the steel market in Europe. However, the economic slowdown observed in some of the major European economies such as Italy, Spain, and France is declining the consumption of steel in major end-user industries. Out of all the end-users, the automotive sector will continue contributing to spend growth in the steel market in Europe.
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What are the Key Price Trends in this Market?
- Overcapacity and environmental concerns will compel steel suppliers in China to reduce their production capacity. This will eschew the global supply and will have an inflationary impact on the steel price.
- Despite forecasts price inflations, the cyclic nature of the steel market price will result in the price increase at a steady pace rather than a radical change. This is evident in the steel market in India, where in response to the demand increase, the price grew at a rate of 3.8% in 2018, whereas, last year recorded a lesser price growth despite a steady increase in demand.
- Forecasts of fluctuations in the prices of raw materials such as iron ore, coils, scrap, coking coal, among others will increase steel suppliers' manufacturing costs.
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Insights Offered in this Steel Market Report
- Global and regional spend potential for the steel market for the period of 2019-2024
- Supplier relationship management practices in the steel market
- Supplier margins and selection criteria in the steel market
- Top steel suppliers and their cost structures
- Top steel suppliers in the US and their cost structures
- Steel market spend analysis in the US
- Steel price trends, and forecasts
- Cost drivers influencing the steel prices
Insights into Steel Supply Market
- The top steel suppliers in mature markets like in North America, Europe, and APAC are adopting slab casting and re-rolling methods as an alternative to the traditional blast furnace. The adoption of electric arc furnaces is also increasing in these markets.
- Steel suppliers are investing in software such as S2P and SRM and IoT technology to have better control over their production processes, impart greater customer satisfaction, and improve cash flow.
- Suppliers who have the ability to offer greater value-additions and services are commanding higher profit margins. These value-added processing services result in economies of scale, which allows steel service centers to provide cost reduction opportunities and efficient freight services to the buyers.
Insights into Some of the Leading Steel Suppliers
This steel market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top steel suppliers. The top steel suppliers highlighted in this report include:
- ArcelorMittal SA
- Nippon Steel Corp.
- Baoshan Iron & Steel Co. Ltd.
- POSCO
- Tata Steel Ltd.
- Nucor Corp.
Criteria to select suppliers in this dynamic steel market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
