Market Scope and Structure Analysis
Flat steel products are usually used in the form of semi-furnished products such as slabs and ingots. These are one of the main construction materials widely used by industries such as railways, grating manufacturing, and automobile manufacturing. Flat steel products help to increase reliability, toughness, and quality to products by enhancing performance with good shelf life and trouble-free processing. Iron and steel play an important role in the economy and the development of the country. Steel is one of the highly recyclable materials and also the most used material in the world.
COVID-19 Impact Analysis
- Coronavirus has affected the import and export of construction materials. China is the largest exporter of construction materials globally. Negative trends in the economy of China are anticipated to reduce the global imports and export throughout.
- Demand for new construction materials has witnessed a massive negative shift since the COVID-19 outbreak in December 2019, with manufacturers and investors fearing an excessively receding economic growth.
- Travel prohibitions around the globe have affected the trade of construction materials. Thus, the supply and demand for construction materials are almost halted.
- Construction materials manufacturing companies located in China, are the major sufferers of the virus outbreak, owing to lockdown and unavailability of logistics in the region.
- The major hindrance for the global construction materials market comes from the orders of home quarantine by respective governments, which has led to the discontinuing of the production of construction materials.
- Decreased consumer demand and consumption has led to reduction and slowdown of sales of construction materials all over the globe for the current economic year.
- Therefore, the flat steel products market was negatively affected in 2020.
Top Impacting Factors
Increase in demand in the construction sector drives flat steel products market growth. Similarly, rise in demand in the automobile industry is also playing a key role in driving the flat steel products market growth. However, high investment cost in flat steel manufacturing industries hampers the market growth. On the other hand, increase in technological advancements and demand for electric vehicles are expected to provide growth opportunities for the market in near future.
China is one of the key consumers of flat steel products globally. The market in Asia-Pacific is anticipated to experience growth owing to the surge in demand for flat steel products. The flat steel products market in India is projected to exhibit the highest CAGR in Asia-Pacific during the study period due to the rise in urban population and the expansion of end user industries including automotive and construction.
- Moreover, business expansion strategies also assist in enhancing the geographic footprint of the company and help in gaining significant market share for the products. For instance, POSCO launched its new premium flat steel brand INNOVILT especially for the construction industry in November 2019. This launch is expected to increase the standard of steel products in the construction industry.
- Similarly, competitors in the base metals industry adopted acquisition as their key developmental strategy to expand their geographical foothold and upgrade their product technologies. For instance, Arcelor Mittal acquired Essar Steel India Limited in December 2019, fully integrated flat steel manufacturer in Gujarat, India. This move by the company is expected to strengthen its presence in India.
Key Benefits of the Report
- This study presents the analytical depiction of the flat steel products along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the flat steel products share.
- The current market is quantitatively analyzed to highlight the flat steel products market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed flat steel products market analysis based on competitive intensity and how the competition will take shape in coming years.
Flat Steel Products Market Report Highlights
Key Market Players
JFE Steel Corporation, SSAB AB, Shougang Group Co., Ltd., Sumitomo Metal Corporation, POSCO, Tata Steel, HBIS Group, China Baowu Steel Group Corporation Limited, ThyssenKrupp AG,, ArcelorMittal