London, United Kingdom (PRWEB) March 12, 2013
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.