Iron & Steel Manufacturing in Canada Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) August 11, 2014 -- The global economic crisis dramatically decreased demand for, and thus production of, iron and steel. When activity in construction and manufacturing markets, the largest consumers of iron and steel, contracted, industry sales also declined. Revenue nearly halved in 2009; however, as the economy slowly improved, rebounding demand for automobiles, which are composed of steel inputs, bolstered revenue in 2010. Though continued weakness in the US construction sector, a primary export market, caused revenue to decline modestly since 2011, this trend is anticipated to reverse in 2014, leading revenue to rise significantly. According to IBISWorld analyst Leah Goddard, “along with the strong recovery in 2010, this increase will help to bolster overall growth since 2009, with revenue expected to rise at an annualized rate over the period.”
Revenue growth has nevertheless been hampered by a secondary slump that began in 2011. As industrial activity contracted worldwide in 2009, steel prices plunged in response to declining global demand. Prices recovered strongly the following year as demand from construction and manufacturing markets bounced back. However, slowing growth in emerging economies, such as China, and persisting debt issues in developed countries throughout Europe and the United States have depressed steel prices since the end of 2011. As these issues linger through 2014, “average selling prices for industry products are expected to decrease over the year,” says Goddard. However, higher sales volumes are anticipated to offset the impact of lower prices as industry output increases to meet rising manufacturing and construction demand. Secondary production or scrap-steel recycling, which has grown as a portion of total output, will satisfy a significant share of this demand while bolstering industry profitability.
The Iron and Steel Manufacturing industry is moderately concentrated, with the three largest players accounting for an estimated portion of industry revenue. Rising international competition is expected to dampen the prospects for the Iron and Steel Manufacturing industry moving forward. This trend, combined with increasing merger and acquisition activity, is anticipated to restrict expansion in the number of enterprises operating in the industry. Over the five years to 2019, fluctuating but generally increasing steel prices, coupled with higher output, will drive revenue growth at a projected average annual rate. Industry growth will be minimal, however, compared with the Iron and Steel Manufacturing industries of competing nations, such as China and Brazil.
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IBISWorld industry Report Key Topics
The Iron & Steel Manufacturing industry manufactures pig iron, steel and ferroalloys. Pig iron may be manufactured in a blast furnace or with newer direct-reduction methods. Steel may be manufactured in basic oxygen furnaces (newly made steel) or in electric-arc furnaces (recycled steel). The industry also includes firms that manufacture basic steel shapes (e.g. bars, plates, rods, sheets, strips and wire) or form pipes and tubes from steel they have produced themselves.
Industry Performance
Executive Summary
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Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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