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Steel market in ASEAN region to grow by 6% during 2015-19 - TechNavio-The 17th China(Guangzhou)Int'l Stainless Steel Industry Exhibition
1/19/2016 Stainless Steel Industry expo |
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according to market research analysis by TechNavio, ASEAN steel market is likely to witness moderate growth at a CAGR of around 6% during 2015-2019 period. The automotive industry, mechanical machinery, and infrastructure and construction industries are the primary users of steel and have been driving the growth of the ASEAN steel market. The infrastructure and construction sector accounts for more than 52% of the global steel consumption.
The supply shortage in this region is anticipated to deter the growth of the market during the forecast period. Mining mills in this region have suffered from unsustainably high operating cost and the reliance on electric arc furnace steelmaking, which has limitations on the raw material used by steel makers. With the steel supply overhauling demand, this has resulted in reduced profit margins for steel manufacturers in the ASEAN region.
One of the major trends is the growth in the renewable energy industry. In addition, throughout the region robust demand for steel in the infrastructure and construction, oil and gas, and automotive industries has been witnessed. Thus, the combination of trends and drivers is expected to propel the growth of the market during the forecast period, the report said.
According to the report, the ASEAN steel market is driven by many factors. One of the major drivers in this market is the growth in end-user industries. Continuing rapid growth in end-user industries, such as the automotive, construction, and infrastructure industries, will boost demand for steel in the ASEAN region.
-stainless-steel-The 17th China(Guangzhou)Int''l Stainless
Steel Industry Exhibition
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