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The Steel Market Analysis, Financials & Forecasting 2012-2022

increase the auto production and subsequently increase the steel consumption in the transport sector. It is expected that the steel consumption in the transport sector will increase 4.5% in the year-on-year terms compared to the 3.1% in 2012. It is expected that steel consumption in the transport sector will grow by 3.4% CAGR during the 2012-2022 period, and will reach 209 million tonnes in 2022. In market value terms, the transport sector is expected to value $206 billion by 2022, compared to $127 billion in 2011.

Table 4.8 Global Steel Consumption Forecast in Appliances Sector 2011-2022 (million tonnes, AGR %)
2011 Appliances AGR(%)
66

2012
68

2013
71

2014
74

2015
77

2016
79

2017
82

2018
85

2019
88

2020
90

2021
92

2022
96

3.1%

4.5%

4.0%

3.6%

3.5%

3.3%

3.1%

3.5%

2.5%

3.0%

3.5%

Source: Visiongain 2012

Figure 4.8 Global Steel Consumption Forecast in Appliances Sector 2011-2022 (million tonnes)
120

100

80 million tonnes

60

40

20

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Visiongain 2012

www.visiongain.com

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close proximity to the US market. Figure 5. the Mexican steel consumption will increase by 4% CAGR over the period 2012-2022.visiongain.com Page 135 . Visiongain forecasts that the steel consumption will reach 31 million tonnes by 2022. a good export market. Financials & Forecasting 2012-2022 Driven by strong domestic demand. strong FDI and coherent government backing. Consumption and Balance Forecast 2011-2022 (million tonnes) 35 - 30 -1 25 -2 -3 million tonnes 20 -4 15 -5 10 million tonnes -6 5 -7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Consumption Source: Visiongain 2011 Production Balance -8 www.The Steel Market Analysis.51 Mexican Steel Production.

He acquired his postgraduate degree in International Trade and bachelor degree in Business Administration. He actively participated with members of other Venezuelan DRI/HBI companies in order to obtain better results for the sector. and is able to produce 2. Orinoco Iron is the largest merchant Hot Briquette Iron (HBI) producer in the Americas.1 The Venezuelan DRI/HBI Industry in the Global Context Visiongain: How do you foresee the Venezuelan DRI/HBI industry in the global context? Juan Jose Prado: Venezuela has an installed production capacity of DRI/HBI. is the possible insufficient supply of electric power and natural gas.com Page 157 . www. The company is present in four continents. In addition. to develop the DRI/HBI industry in the desired terms these resources would be insufficient.S Visiongain sought expert opinion of Mr Juan Jose Prado. Therefore. It is well known that Venezuela has enough sources of electricity and natural gas but due to poor maintenance. who is the Marketing Specialist at Orinoco Iron. Expert Opinion 8. Marketing Specialist at Orinoco Iron S. if Venezuela bring DRI/HBI plants to their design capacity. The risk factors that would work against a good performance of iron and steel processing industry in Venezuela.S. The plant uses FINMET® technology. and marketing. currently Venezuela does not have enough power to bear all the direct reduction plants and steel mills to their maximum capacity. lack of spare parts and low investment in this sector in recent years. the country has abundant iron ore deposits and an industrial park with several years of operation and highly trained personnel in the direct reduction sector. But the proper use and performance of these resources will depend on the political context that develops in the country. shipping. S.1.C.visiongain. then it will have deficits of these two basic inputs because the government has not made any investment projects in infrastructure to have enough electric power and/or natural gas. close to 11 millions tonnes per year. He has extensive experience in the DRI/HBI industry and involved in all aspects of the Oronoco Iron business including. sales. Moreover.C.2 million metric tonnes of HBI per year. and it started exports in the late 1970's.1 Juan Jose Prado. Financials & Forecasting 2012-2022 8. 8.The Steel Market Analysis. having to compete with other sectors that require the same resources.

China Employees (2011): 30. is a Hong Kong listed company engaged in the production and sales of steel products. large sections. and stainless steel products. Financials & Forecasting 2012-2022 9. machinery.com Page 171 .9bn ArcelorMittal is the largest market player in the steel industry with operations across 60 countries.The Steel Market Analysis. plates.1bn Anshan Iron and Steel Group Corporation. engineering. construction. ArcelorMittal’s iron ore and coal mining projects have been a key focus in recent years and this focus is only expected to intensify in the medium term. The company specialises in both flat and long products including hot and cold rolled products. the company serves clients across all steel-consuming industries. ArcelorMittal also produces pipes and tubes for various applications. also known as Ansteel. ArcelorMittal produces a broad range of high-quality finished and semi-finished steel products. steel making.1 Anshan Iron and Steel Group Corporation (Ansteel) • • • Headquarters: Anshan. The company has the capability to produce 16 types. iron making. 9. In 2008. seamless steel tubes. railway construction and other fields. wire rod. including automotive. cold rolled silicon steel and other steel products. 600 steel grades and 42. The company has coking. appliance. cold rolled sheets. sintering. shipbuilding. and have a complete set of energy power system. energy and machinery. Liaoning Province. 120 sub-types. widely used in the automotive. Products include hot rolled plate.000 Revenue (2011): $93. galvanised sheet and colour coated plate.visiongain. structural shapes. With an employee base of nearly 282. sheets. Zhang Xiaogang is the Chairman of the company. rods.000 specifications of steel products which are widely used in various fields of the national economy.902 Revenues (2011): $14. Mr. bars.2 ArcelorMittal • • • Headquarters: Luxembourg. appliance. steel rolling and other complete modern production process and related facilities. Luxembourg Employees (2011): 260. as the company has a goal to secure 100 million tonnes of iron ore supply from its own mines and other strategic long-term supply contracts www.000. Ansteel produced 16 million tonnes of iron and 16 million tonnes of steel which was increased to 22 million tonnes of iron and steel 22 million tonnes in 2010.