Steel products: Key market research findings
- Increase in use of steel scrap
- Growth in renewable energy industry
Technavio has released a new market research report on the global steel long products market, which is expected to grow at a CAGR of around 5% between 2016 and 2020. Steel long products include rebars, wire rods, tubes, sections, hot rolled bars, and rails. These products are expected to witness high demand in the coming years especially from construction, transmission and distribution, and automobiles industries. APAC is expected to occupy the largest share in the steel long product market due to its extensive use across the construction and transmission and distribution sectors. Being the world’s largest steel producer, China is the major revenue-contributing nation to the steel long products market in the APAC region.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“One of the latest trends upcoming in this market is the extensive usage of steel scrap. Owing to the increasing need to reduce carbon footprint, several developing countries like India and China are increasing their usage of scrap iron. Recycling of scrap helps to bolster the industry’s economic viability and also reduces the environmental impact by eliminating the need for iron ore extraction for steel production. Since the use of steel scraps helps industries to reduce their carbon dioxide emissions and save energy and water, its demand during the forecast period is estimated to increase significantly,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research
Steel long products strengthen the structural integrity, providing better ability to absorb energy, adapt to extreme conditions, and change forms, in construction. Steel long products are expected to play a significant role in the construction and development of infrastructure for the generation of power from renewable energies such as solar, tidal, and wind. Moreover, the steel producers are also working with the solar industry to explore innovations in generating electricity.
The leading vendors in the global steel long products market include ArcelorMittal, EVRAZ, Gerdau, Hebei Iron and Steel, Jiangsu Shagang, NSSMC, and Tata Steel Europe. This market is characterized by the presence of intense competition, which is driven by excess capacity, and cyclicity of high CAPEX investments across various end-user segments. In this market, increasing instances of mergers and acquisitions will pose a serious threat to small vendors. The vendors in this market compete on the basis of supplying the industry-specific products.
A more detailed analysis is available in the Technavio report, Global Steel Long Products Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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