Steeled for trouble: Strong competition from low-cost imports has eroded industry revenue

Industry operators have struggled to contend with difficult operating conditions over the past five years. As a result, revenue is expected to decline at a compound annual rate of 5.1% over the five years through 2018-19. Domestic demand for steel has remained below pre-crisis levels, contributing to the decline in revenue. Global demand for steel fell during the latter part of the period, fuelled by a slowdown in China, and hampered industry performance. Industry exports also fell because overseas rivals were able to produce steel at considerably lower costs. This was because industry operators are faced with high energy costs and additional charges related to climate change more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Exports have become less competitive while import competition has grown in recent years
  • Operators lost global market share as they were unable to compete with lower cost foreign firms
  • Potential restrictions to trade would likely dampen industry exports, negatively affecting revenue
  • Industry Report - Industry Products Chapter

    Plates, sheets and stripsThe largest product segment consists of iron and steel plates, sheets and strips. Together these are expected to account for 28.3% of industry revenue. Plates come in a variety of thicknesses and grades, and are used widely in construction and shipbuilding. Sheet metal is typically thinner than plates, making it more malleable and easy to bend or cut into different shapes. Steel sheets are often used to manufacture motor vehicle bodies or other transport equipment, medical equipment, furniture and industrial equipment. Metal strips are narrower than sheets or plates. They are also used to manufacture a range of items, including motor vehicle parts, saw blades, kitchenware, springs, watch parts, manifolds and pumps. Thi...purchase to read more.

    Additional Insights for the Iron & Steel Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron & Steel Manufacturing Industry are

  • Ability to compete on tender
  • Ability to accommodate environmental requirements
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as World price of steel and Total value of construction in the Iron & Steel Manufacturing industry impact industry performance..

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    What's in this report

    What is the Iron & Steel Manufacturing Industry?

    Firms in this industry produce iron and steel in blast furnaces or reprocess steel in electric arc furnaces. They make a variety of basic steel products, such as ingots, sheets, plates, bars, rods, girders and sections.

    Industry Products
  • Sections
  • Rods and bars
  • Ingots
  • Wire coil
  • Plates, sheets and strips
  • Tin mill products
  • Railway tracks and other products
  • Industry Activities
  • Producing pig iron
  • Manufacturing ferroalloys
  • Producing angles, shapes and sections of stainless steel, iron, alloy and non-alloy steel
  • Producing bars and rods of stainless steel, iron, alloy and non-alloy steel
  • Manufacturing ingots
  • Manufacturing plates, sheets and strips of iron and steel
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of steel
  • Total value of construction
  • Demand from motor vehicle manufacturing
  • World price of coking coal
  • World price of iron ore

  • Current Performance
  • Downstream trends
  • Trade environment
  • Volatile margins
  • Chart: Revenue Growth

  • Industry Outlook
  • EU influences
  • Domestic conditions
  • Global demand
  • Profit performance
  • Table: Iron & Steel Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron & Steel Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Manufacturing
  • Commercial Building Construction
  • Residential Building Construction
  • Railway & Underground Railway Construction
  • Metal & Metal Ore Wholesaling

  • Key Selling Industries
  • Hard Coal Mining
  • Waste & Scrap Wholesaling

  • Products & Services
  • Plates, sheets and strips
  • Rods and bars
  • Sections
  • Ingots
  • Wire coil
  • Tin mill products
  • Railway tracks and other products
  • Chart: Iron & Steel Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction sector
  • Machinery and equipment manufacturers
  • Fabricated metal producers
  • Automotive sector
  • Other metal goods manufacturers
  • Chart: Major Market Segmentation for the Iron & Steel Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesUtilitiesDepreciation, rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Iron & Steel Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron & Steel Manufacturing Industry

  • Industry Globalization
    British Steel Ltd, Tata Steel UK Limited, Celsa (UK) Holdings Ltd,
  • Table: British Steel Ltd - financial performance
  • Table: Tata Steel UK Limited - financial performance
  • Table: Celsa (UK) Holdings Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Iron & Steel Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Iron & Steel Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Electric Arc Furnace
  • A furnace that heats charged material by means of an electric arc.
  • Ferroalloys
  • Alloys of iron containing a high proportion of one or more other elements, such as aluminium, manganese, silicon, nickel or magnesium.
  • Ingot
  • A material, usually metal, that has been cast into a shape suitable for further processing.
  • Melt Shop
  • A melt shop melts scrap charge to liquid steel at the required temperature and chemical analysis.
  • Smelting
  • A form of extractive metallurgy. Its main use is to produce a base metal from its ore.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Iron & Steel Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Iron & Steel Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Iron & Steel Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Iron & Steel Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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