Europe’s steel industry accounts for roughly 9% of global crude steel production. Europe is home for some of oldest and largest steel producing companies such as ArcelorMittal which produced 97.31 million tonnes in the year 2019 (according to the reports from world steel association).
The production of crude steel remained stable despite shifting global market trends. Construction, automotive, and mechanical engineering are main consumer of Europe’s steel.
Steel is an alloy of iron and carbon containing less than 2% and 1% manganese and small amounts of silicon, phosphorus, sulphur and oxygen. It is a known fact that world uses ample steel for construction products. Steel is most versatile industrial material, which is 100% recyclable.
Most of steel in Europe is made of two basic routes:
After rapid rise of steel price across Europe (post lockdown) in the second half of 2020, sources have been voicing that there will be echo of situation in 2008.
Due to COVID-19 lockdown measures across Europe in first half of 2020, many steel producing companies had to be idled their plants to balance the supply with declined demand.
When the measures been leaned, EAF based steel producers were quick in restarting their facilities, but BF-BOF remained shut for longer period.
Rising of demand for steel pipe piles in various applications is driving Europe steel market. Soil displacement, high initial costs and additional requirements are major factors obstructing the market.
Advancements in technology like use of fibre optic sensors in pile creating breakthrough in the market. Steel pile consumption increased with rise in population, increasing infrastructures.
The adoption of stainless-steel electrical enclosures is governed by several national regulatory standards to improve safety in site. Rising awareness regarding workers’ safety and health, along with increasing fatalities in various industries, is likely to boost the market growth during the period 2020-2027.
The European steel industry is facing serious challenges. As a result of reduced global demand, steel production in EU has significantly dropped and workforce has continuously declined. COVID-19 pandemic is adding additional structural difficulties and making unyielding actions an inevitable.
According to EU global deal on steel, the steel industry accounting as most advanced among energy intensive industries in terms of CO2 footprint. Industries planning to cut down its emissions by 30% until 2030, and will lead to achieve carbon neutrality by 2050.
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Under the EU Merger Regulation, the European Commission has prohibited Tata Steel and ThyssenKrupp from forming a joint venture. For different types of steel, the combination would have reduced competition and raised prices. To address these concerns, the parties did not provide effective remedies.
These industries employ millions of people in Europe, and corporations rely on competitive steel costs to sell globally. The merger of Tata Steel and ThyssenKrupp would have resulted in higher prices if major competition issues had not been addressed. As a result, the merger was outlawed in order to protect European industrial clients and consumers.
JFE Steel Corporation and thyssenkrupp Steel Europe (tkSE), Germany’s largest steel producer, announced today the launch of new high-strength steel sheets capable of cold forming for the fabrication of vehicle frame components in the 980- and 1180MPa classes.
When compared to standard high-tensile steel sheets, the products attain higher yield strength and ductility, particularly superior local ductility, resulting in lighter-weight automotive body frames and improved crash safety performance.
By allowing customers to build complicated-shape components using standard cold forming rather than hot stamping, the new sheets are intended to assist boost productivity and cut manufacturing costs.
High-strength steel, on the other hand, suffers from poor formability, which is why it’s been difficult to use high-strength steel to make complex automobile components.
JFE and tkSE created their steel sheets with a new composition and microstructure that emphasises local ductility to address this obstacle.
They also developed a new heat-treatment approach based on “quenching and partitioning,” a metallurgical procedure in which the austenite phase, which forms at high temperatures and contributes to ductility, is quenched and then reheated to assure room-temperature stability. These innovative goods and their manufacturing process combine a variety of intellectual rights from JFE and tkSE.
Urbanization and construction provide a strong demand for steel products while growth of manufacturing industry provided demand for flat products like hot and cold rolled and stainless steels, which is likely to have positive outlook in steel market.
Companies are investing on technological advancements and new product launches to improve production efficiency and quality of the product.
Consumers are opting lightweight, sustainable low costing building materials, prompting manufacturers to research new products to reach consumers’ demand.
The specifications from various industries making the steel industry to adopt new strategies such as acquisition and geographical expansion where potential opportunity for steel products is added for mutual benefits.
Key market players in producing steel including ArcelorMittal, ESC group, JFE Steel, Nippon Steel. These companies are considered of steel products based on their revenue generated, R&D activities, brand value and their superior supply chain management system.
In terms of European countries, the market is segmented into Germany, France, Italy, UK, Spain and rest of Europe. Germany is promising country in producing steel. It contributed almost one forth of the share market in 2020.
As there is growth in population and increase in public requirements, infrastructure developments are increasing such as, bridges, residential/commercial buildings, docks, etc., which driving the steel market in Europe.
Europe is responsible for 37% of global steel production. Within Europe, members of EU are considered the second largest steel producer in the world after China. Many companies in Europe contributing best quality steels. Key players for various types of steels are:
Despite of these companies, there are many industries which are key players in the market:
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