Global Cold Rolled Coils Market Is Expected To Grow At A CAGR Of 2.14% From 151.95 Million Metrics In 2017 To Reach 174.11 Million Metrics By 2025
Thursday, 11 Oct, 2018
The huge demand for processed steel from emerging economies due to automotive industry development and increasing industrialization is expected to accelerate the growth of the steel processing market. The major restraining factor for the steel processing market is the market saturation in developed countries due to the cyclical nature of steel industry. The primary challenges faced by this market are environmental concerns and elimination of excess production.
China also is the largest production and consumption place, with a consumption market share nearly 44.57% in 2017. Following Europe, Europe is the second largest production place with the consumption market share of 14.20%.
The cold-rolled coil prices have seen a significant increase from 2016 to 2017 since it sulfured a continuously decline in the 2014-2016 period. In 2017, the cold-rolled coil average price is 744.0 USD per tonne globally and will keep increasing as a result of rising raw material costs.
The end-user industries of processed steel are automotive, domestic appliance, construction, machinery parts, electronic goods, furniture, and others. Growth in the home appliance and automotive industry and recovery of global economy are the key drivers of the steel processing market.
Leading players in the cold rolled steel coil market include ArcelorMittal (Luxembourg), Baowu Steel Group (China), POSCO (South Korea), Nippon Steel & Sumitomo Metal Corporation (Japan), and JFE Holdings, Inc. (Japan). The cold rolled steel coil market is a highly fragmented one owing to its application in almost all industrial verticals. Major companies rely on regional and local distributors to increase their share as well as geographical presence in the market. One of the major developments observed in the steel processing market is mergers & acquisitions. The requirements of the end users for processed steel is continuously changing making it essential for the manufacturers to continually invest in R&D and come up with innovative solutions. Companies are adopting inorganic growth strategies such as acquisitions to cope with the increasing demand for finished steel in key emerging markets. These strategies have aided companies create a large customer and partner base in key markets.