Iron & Steel Manufacturing in the UK Industry Market Research Report Now Updated by IBISWorld

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After facing challenging trading conditions over the past five years, the Iron & Steel Manufacturing industry is expected to return to growth over the next five years to 2017-18 with higher steel prices and partly restored confidence in the economy the main catalyst. For these reasons, industry research firm IBISWorld has updated its report on the Iron & Steel Manufacturing industry.

IBISWorld industry market research
Revenue growth returns with recommencing steelworks

The Iron & Steel Manufacturing industry has faced extremely challenging trading conditions over the past five years. The industry's fortunes depend on activity in the construction and automotive industries, among others, and also on the price of inputs such as iron ore and coking coal. Demand from these industries contracted as the financial crisis took hold in 2008-09. Steel prices then plunged in 2009-10 as demand dried up in the wake of the financial crisis.According to IBISWorld industry analyst Lewis Sutton, “as a result of these difficult conditions, industry revenue is expected to fall at a compound annual rate of 2.9% over the five years through 2012-13, reaching £8.94 billion”.

Conditions in downstream markets had marginally improved in 2010-11, encouraging the industry to return to growth. Higher steel prices and partly restored confidence in the economy have been the main catalysts for the recovery. Sutton adds, “industry revenue is expected to grow by 4.8% in 2012-13, which has been supplemented by the recommencement of the major steelworks facilities at Teesside”. The industry is expected to continue its recovery over the next five years through 2017-18.

The proportion of revenue accounted for by exports has been rising over the past five years and is expected to continue rising. This growth is only gradual and is largely supplemented by the reopening of the Teesside steelworks. This site has the second-largest blast furnace in Europe, and a majority of its products are to be shipped overseas. The level of import penetration grew over the recession-burdened years and it will remain high. However, penetration will stop growing as domestic firms stabilise profit margins.

The Iron & Steel Manufacturing industry has a high level of concentration. The top four companies have a combined market share of approximately 75%. The dominant market player, Tata Steel Europe, accounts for 57.3% of total industry revenue. This illustrates the monopolisation of the industry. Other major companies include Sahaviriya Steel Industries UK and Celsa Steel (UK).

For more information on the Iron & Steel Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
310 866 5042
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