Copyright © 2013 RNCOS. All rights reserved.
Unless otherwise indicated, all materials on these pages
are copyrighted by R...
US Steel Industry - Overview
US steel industry is equipped to lead due to ample manufacturers

in

the

automotive,

energ...
US Steel Industry - Market Size and Growth Rate
The US is the third largest crude steel
producer

in

the

world

after

C...
Further, apparent consumption for finished steel

Figure 4: Apparent Finished Steel Consumption

products is grew 8.4% in ...
US Steel Industry - Market Breakup/Segmentation
In the US, major fraction of the crude steel produced is of continuously c...
US Steel Industry - Opportunities and Challenges

▪ Positive momentum from the construction sector will prosper steel indu...
US Steel Industry - Future Outlook
In future, growth in the United States will be supported by
strong momentum in the auto...
US Steel Industry - Key Players
▪ Nucor Corporation
▪ United States Steel Corporation
▪ Gerdau Ameristeel
▪ Commercial Met...
RNCOS is a leading business consultancy services company believes that in today's cut-throat environment, companies
need t...
About US
RNCOS is a business consultancy services firm that provides services to clients across the Globe. With more than ...
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US Steel Industry - Aug '13

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US Steel Industry - Aug '13

  1. 1. Copyright © 2013 RNCOS. All rights reserved. Unless otherwise indicated, all materials on these pages are copyrighted by RNCOS. All rights reserved. No part of these pages, either text or image may be used for any purpose other than personal use. Therefore, reproduction, modification, storage in a retrieval system or retransmission, in any form or by any means, electronic, mechanical or otherwise, for reasons other than personal use, is strictly prohibited without prior written permission.
  2. 2. US Steel Industry - Overview US steel industry is equipped to lead due to ample manufacturers in the automotive, energy, supplies of affordable energy through natural gas, machinery and equipment, container, appliance and stable labor relations, a vast steel market and a drive rail industries. for innovation. Besides these factors, rising technology and innovation is also continue to drive the steel industry through challenges faced whether its trade issues, environmental, or the general volatility of the global steel economy. Presently, construction industry accounts major share of steel consumption in the country followed by automotive and machinery & equipment industry. In future, along with construction and automobile sector, energy sector is also expected to Further, steel has long been considered the grow tremendously on the back of tremendous backbone of the country's manufacturing sector, growth of demand from oil & gas sector. providing an essential material for downstream Figure 1: Steel Shipments by Sector (%), 2012 & 2017 Source: American Iron and Steel Institute, IhS Global Insight Note: Data is estimated Source: RNCOS
  3. 3. US Steel Industry - Market Size and Growth Rate The US is the third largest crude steel producer in the world after China Figure 2: Crude Steel Production (Million Metric Tons), 2009-2012 & 2017 (Production 716.5 Million Metric Tons in 2012) and Japan (Production 107.2 Million Metric Tons in 2012). In 2012, Crude steel production in the country witnessed an increase of more than 2.5% to reach 88.6 Million Metric Tons compared to the previous year. Further, it is expected to grow at CAGR of around 4.5% during 2012-2017. Besides, country's share in world's crude steel production in 2012 was 5.7%. Source: World Steel Association, RNCOS Note: f = RNCOS Forecast Figure 3: Apparent Steel Consumption (Million Metric Tons), 2009-2012 & 2017 With the improving demand from various industrial sectors, steel consumption (Crude Steel Equivalent) in 2011 grew 10.7% compared to 2010. However, apparent steel consumption is anticipated to grow at CAGR of around 4.3% during 2012-17 to reach around 130 Million Metric Tons by the end of 2017. Source: RNCOS Note: Crude Steel Equivalents
  4. 4. Further, apparent consumption for finished steel Figure 4: Apparent Finished Steel Consumption products is grew 8.4% in 2012 from the previous year. (Million Metric Tons), 2012 & 2017 In future, due to the automotive and energy sectors and an increasingly resilient construction recovery, apparent steel consumption is forecasted to at a CAGR of more than 4% during 2012-2017. Source: World Steel Association, RNCOS Note: f = RNCOS Forecast In 2012, steel exports and import grew more than 10.5% and 1% respectively compared to previous year. In coming years, export is anticipated to rise further as domestic demand is not expected to reach pre-recession levels before 2015 as construction spending languishes. However, imports growth is expected to be affected by high antidumping and countervailing duties imposed by the US authorities. Figure 5: Export and Import of Steel (Million Net Tons), 20102012 Source: World Steel Association, RNCOS
  5. 5. US Steel Industry - Market Breakup/Segmentation In the US, major fraction of the crude steel produced is of continuously cast steel type accounting 98% of the total crude steel production. Moreover, it is expected that ingots production share will further decline in the coming years due to high cost of production and various other disadvantages over continuously cast steel process. Figure 6: Crude Steel Production by Type (2012) Source: RNCOS In the US, flat products account for a major share in total apparent steel consumption in the country. In 2012, share of flat products consumption is estimated to 58% share in total steel consumption, followed by long products. Figure 7: Apparent Steel Consumption by Type (2012) Source: RNCOS
  6. 6. US Steel Industry - Opportunities and Challenges ▪ Positive momentum from the construction sector will prosper steel industry. Recently, MTA (Metropolitan Transportation Authority) announced to buy steel from domestic companies for its Verrazano bridge project which has a demand of 15,000 Tons of steel plate. ▪ The strong growth from automotive industry. ▪ Demand from energy sector is also growing. For instance, US shale gas revolution is going to create a need for more steel that goes into the pipes to bring the gas to the user. ▪ Upcoming breakthrough technologies as next generation of iron and steel making technologies that reduce or eliminate CO2 emissions and manufacturing of lighter steel for automobiles will also boost the growth of steel industry. ▪ Rising import levels hurting country's steel manufacturers. ▪ Volatility in raw material costs are making domestic production costly. ▪ General economic uncertainty due to country's tax reforms and spending cuts. (Though the best case scenario is a slight improvement in steel demand in the US with a GDP growth of 2.5%, if Congress is unable to reach a compromise on tax reforms, it could lead to market uncertainty and economic disruptions). ▪ New EPA (Environmental Protection Agency) rules are also going to have an effect on the steel sector - particularly those supplying to the automotive industry. Vehicles will have to be lighter, and therefore there is the threat of aluminum or plastic substitution.
  7. 7. US Steel Industry - Future Outlook In future, growth in the United States will be supported by strong momentum in the auto sector which is expected to account around 27% share of steel consumption by the end of 2017. Automobile production in US is growing at CAGR of around 15% during 2010-12, exhibiting ample opportunities for steel industry to grow. In addition to that, recovery in construction sector is also boosting the country's steel industry and expected to account 42% share of total steel consumption in the country. Also, demand from US$ 235 Million worth Verrazano Bridge project will boost the demand of steel orthotropic decks in the country. MTA is going to spend US$ 201 Million on U.S. products and labor. Besides that, various companies such as Pro-Tec Coating Co. and NanoSteel are working towards research and development in the field of steel for making it lighter, stronger, more easily formable steel to help automakers Additionally, demand for steel tubes to use for drills, well meet the tougher fuel economy and safety standards which casing, pipelines and other equipment will also rise on the will help the steel industry to grow further and to back of country's shale gas revolution. Companies such as overcome EPA norms' challenge. U.S. Steel and ArcelorMittal have been racing to develop steel for the resurgent Detroit auto industry and pipes for the shale gas revolution. Although country's US steel industry is growing countinuously; huge global overcapacity, sluggish demand in many sectors, and prices that have been falling steadily Oil and gas industry might be responsible for about a third since 2011, are still the major challenges in US Steel of expected 20% growth in the US steel market by 2020. Industry. Even so, other uses such as construction and the car industry are still very important.
  8. 8. US Steel Industry - Key Players ▪ Nucor Corporation ▪ United States Steel Corporation ▪ Gerdau Ameristeel ▪ Commercial Metals Company ▪ Steel Dynamics, Inc. ▪ AK Steel Holding Corporation ▪ Arcelormittal Holdings Inc. ▪ Allegheny Technologies In 2012, global production of crude steel hit a record 1.55 Billion Tons, up 1.2% from 2011. Even in the U.S., where the manufacturing sector is not seeing its finest days, steel production led by mills run by U.S. Steel Corp. and Arcelor Mittal in the Midwest, and Nucor Corp. in the South, rose 2.5% to 88.5 Million Tons last year. While all the three companies faced revenue drop in 2012. Revenue of U.S. Steel Corp., Arcelor Mittal and Nucor Corp. declined by 2.8%, 10.38% and 2.97% respectively from 2011.
  9. 9. RNCOS is a leading business consultancy services company believes that in today's cut-throat environment, companies need to understand their business environment better. Critical questions that businesses need to address: GROWTH PARTNER ● What geographies to target? ● How to identify & increase the customer base? ● How to enhance the brand image? We help you make informed decisions through the practical application of research, hand holding you to your success… ● How to launch new products and find distributors? ● What is the current market structure and market size? We understand your immediate needs and your long-term goals and objective and work with you on how to accomplish them. RNCOS blends the best of strategy consulting with the best of market research to provide organizations with accurate, succinct answers to their most important business questions. What is the market size Similar products in the market Structure of the market Who are your buyers Features, attributes & market share of these products Buyers’ buying behavior Customer preferences Expectations from the product Price range of these products Most suitable distributors and channels for your business. Financial & strategic analysis of existing competition Analyzing their strength, credibility, scale of operations. Acceptance level among customers Assisting in distributor selection. New market entrants Emerging competitors
  10. 10. About US RNCOS is a business consultancy services firm that provides services to clients across the Globe. With more than a decade of industry experience and expertise, we boast of a distinguished clientele' across multi geographies and industry verticals. Our strength lies in the healthcare sector besides Retail and Information Technology. Be it market testing, product launch, competition assessment, customer satisfaction study, pricing analysis or any other requirement, RNCOS custom research team acts proactively to fit in the best possible solution for our valued clients. We believe in multi-level client interaction and complete transparency from the project commencement till effective implementation, thus ensuring total customer satisfaction at the end. Having served close to 200 renowned as well as start-ups globally, our strength lies in multilingual and multi geography tie-ups with leading market survey partners who assist us in gaining vital primary insight straight from the horse's mouth. Vartika Sehgal Sr. Research Specialist RNCOS B-129, Sector - 6, Noida - 201301 Phone: + 91 (120) 4224700 Fax: +91 (120) 4224707 Email: marketing@rncos.com Website: http://www.rncos.com

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