LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global steel flat-rolled products market to grow at a CAGR of over 6% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global steel flat-rolled products market for 2016-2020. The report also segments the market for global steel flat-rolled products by type and by end-users.
Technavio chemicals and materials analysts highlight the following three factors that are contributing to the growth of the global steel flat-rolled products market:
- Industrialization and development in APAC
- Changing demand in China
- Demand from automobile industry
Industrialization and development in APAC
APAC is the largest and strongest growing market for steel flat-rolled products worldwide. The rapid increase in industrialization and development in China, India, and South Korea is the primary demand driver for steel flat-rolled products in this region. The construction market is expected to grow at a CAGR of over 12% during the forecast period which will translate into demand for steel flat-rolled products.
The Indian government is investing in infrastructure, which will boost the demand for steel. The Indian government has banned iron ore, to fight against illegal mining, which will reduce domestic supply. The government is, however, making efforts to bring in transparency in the auctioning process of the iron ores assets and monitoring iron ore exports to improve the domestic availability of iron ore. This will allow Indian steel makers to access secured feedstock during the forecast period.
Changing demand in China
During 2000-2015, industrialization and urbanization in China has been a significant driver of the global steel demand. The Chinese government is investing heavily in infrastructure, driving the economic growth. The steel-intensive infrastructure sector has driven the steel flat-rolled products within China, which, in turn, has fueled the demand for iron ore.
According to Chandrakumar Badala Jaganathan, lead analyst at Technavio for metals and minerals research, “There may be imbalances and slower growth in the steel industry as China's policies are likely to be more focused on urbanization, with new urban models centered on sustainability and technology.” China is also focusing on sustainable growth based on consumer demand rather than centrally planned investment that can take on the metals and other industries as drivers of economic growth.
Demand from automobile industry
The global automobile industry is expected to grow at a rapid rate during the forecast period. Economic recovery in the US and Europe has led to increasing demand for automobile products. This economic recovery has resulted in increased employment, increased per capita income, and easy credit facilities, all of which have together have boosted the consumer buying power and business sentiment.
This demand will compel automobile manufacturers to increase their production levels either by installing new capacity or by expanding existing capacities. The global automobiles market is expected to grow at a CAGR of 5%-6% during the forecast period. These factors will contribute to the rise in use of steel flat-rolled products for many applications in the automobile industry.
Browse Related Reports:
- Global Steel Scrap Market 2016-2020
- Global Rolling Stock Market 2015-2019
- Steel Market in ASEAN Countries 2015-2019
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About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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