Steel Market Analysis

In-depth Analysis of Steel Market Industry Landscape

The demand for steel, especially steel tubes, is on the rise in many areas like mechanical engineering, home appliances, and automobiles. One major factor contributing to this increased demand is the growth of the automotive industry. With more cars being produced and registered, the need for steel is expected to go up significantly. In Western Europe alone, the number of registered cars was about 14.3 million in 2017, showing a 3% increase from the previous year. Eastern Europe also saw growth, with 1.3 million new car registrations.

According to the German Association of the Automotive Industry, the demand for automobiles increased notably in Spain, France, and Germany during the fourth quarter of 2017. However, Italy and the UK experienced a decrease in demand by around 2.3% and 4.4%, respectively. While the automotive industry is growing, the export of vehicles and components from Europe has declined due to the expanding manufacturing base in developing nations. This may lead to a slower pace of growth in the European automotive industry.

Steel is not only crucial in automobiles but is also widely used in home appliances such as fridges, washing machines, ovens, microwaves, and cutlery. The market for household appliances in Europe is growing as there is increased investment in research and development to create innovative and advanced products. Germany dominates the home appliances market in Europe, driven by higher spending on consumer appliances, particularly larger items like dryers, coffee machines, and ovens.

In the field of mechanical engineering, the use of steel is also increasing. Europe is recognized as the world's largest producer and exporter of machinery, holding a substantial 36% share of the global machinery market, according to the European Commission. Steel is an integral component in various industrial machines like conveyor belts, hydraulic lifts, and production lines.

Additionally, steel plays a vital role in industrial applications, including the construction of pipelines for transporting water, gas, and liquid wastes in industrial complexes. This widespread use of steel across different applications is expected to drive the growth of the steel market in Europe. As demands continue to rise in the automotive, home appliance, and mechanical engineering sectors, the steel industry is likely to experience significant expansion in the region.