Economic uncertainty in Europe leads to moderate demand for Iron and Steel.

Tuesday 27 August 2013, Amsterdam

The European iron and steel construction market consists of four categories: railway materials, pipes and tubes, fabricated structures and parts, and reservoirs, tanks and other containers. The need for and use of these categories varies. The largest category in the European iron and steel construction market was pipes and tubes with a market share of 50.4% and a value of over US$40 billion.

In terms of growth, the reservoirs, tanks and other containers category is estimated to record a CAGR of 5.28% over the next 5 years. This is a drastic turnaround in comparison to the last 5 years where the CAGR was recorded at
-4.21%. This trend is set to continue across all categories within this market and will result in the European iron and steel market growing at an estimated CAGR of 4.40% over the same period, comparing this to a previous CAGR of
-6.18%, we can see that it may be a promising time for the industry.

Knock-on Effect sees the economic uncertainty in Europe impact construction and automotive companies.
Demand for iron and steel correlates highly with the demand in other industries such as real estate, infrastructure and automotive. According to the European commission, Europe is the world’s second largest steel producer, accounting for 11% of the world’s total steel output and employing 360,000 people. The continuing economic uncertainty in Europe adversely affected the iron and steel market, and directly impacted the construction and automotive industries.

Reduced public spending will continue to affect the growth of the European construction industry.
Budget deficits and government debt in several countries in Europe are at alarmingly high levels, leading to record high unemployment levels. Spain, Greece and Ireland are the most affected countries, and have damaged investor confidence throughout the EU. As austerity measures take effect, reduced public spending will continue to affect the growth of the European construction industry. According to Eurostat, the European construction industry’s gross value fell by 3.8% in the first quarter of 2013 compared with the same period in 2012.

Automotive industry badly affected by the European economic crisis.
The economic crisis across Europe has also badly impacted the automotive industry. With high unemployment, austerity measures and weak economic conditions, demand for automotive products is declining. According to the European Automobile Manufacturers’ Association (ACEA), in March 2013, new car sales underwent their 18th consecutive month-on-month decline.
In Sweden, the car market has been declining over the past year and a contraction in January 2013 was the 15th month of output decline in 17 months. Volvo, being the clear market leader with 20% of the Swedish car market, announced in October 2012 that it would close its bus production in Sweden due to weak demand from Europe. Volvo also shut production at its main plant in Gothenburg in the same month. The downturn raises concerns over the short-term prospects for the European iron and steel market.

This report offers:
•    In depth analysis and market overview of the iron and steel market in Europe including market dynamics, key trends and issues and key market indicators.
•    Market attractiveness and future prospects of the European iron and steel construction industry.
•    A segmented breakdown of the competitive landscape and industry dynamics within the European iron and steel construction market and the sectors within it.
•    An insight into the industry size and growth potential.
•    A look into an assortment of European iron and steel construction companies including company overviews, services, history, employees, etc.

This will facilitate:
•    The increasing of your knowledge of the European iron and steel construction industry.
•    Your understanding of the key drivers within this industry.
•    A clear understanding of market opportunities and entry strategies to gain or grow your market share in the European iron and steel construction industry.
•    A greater understanding of the competitive landscape of the European iron and steel construction industry