Industry Analysis Case Study

Global Steel Industry: The Country Factor

OR

Abstract:
The reconstruction of infrastructure across the world after the Second World War prompted steel industry rise sharply. Demand exceeded supply resulting high profitability which translated into capacity augmentation. But since 1970's the demand plummeted down, resulting over capacity and high cyclicality in the Industry. The industry regained from 2002 due to China's booming economy, higher economic developments in other BRIC (Brazil, Russia, India) countries, emergence of CEE (Central and Easter Europe) countries as rapidly developing economies and positive economic developments in Triad (Europe, USA and Japan) etc. Analysts were skeptical about the long term sustainability of the industry. The concern is vital for the senior managers and the policy makers in the steel industry to understand the dynamics of this industry and to shape their strategies accordingly.

Pedagogical Objectives:

• An outlook of global steel industry
• Factors affecting the demand and supply of the global steel industry
• The imp[act of China, BRIC, TRIAD and CEE economies on the global steel industry
• Opportunities and challenges for the players in the global steel industry.

Keywords : CEE; TRIAD; Steel Production; BRIC; Value Chain; Arcelor-Mittal; Baosteel; Fragmentation; Industry Analysis Case Study; Downstream Production; Investment Trap; Global Steel Industry; Regional Champions; Niche Specialists; Global Player; Steel Cycle