Business Case Studies, Industry Analysis Case Study, Consolidation,Global Steel Industry

print page
Tell A Friend

Case Categories

Share |

Industry Analysis Case Study

Case Title:

Consolidation in Global Steel Industry: What Lies Ahead?

Publication Year : 2007

Authors: Sweta Chhaochharia, Kumar Satyaki Ray

Industry: Minerals, Metals and Mining


Case Code: INA0121K

Teaching Note: Available

Structured Assignment: Available

Buy This Case Study


Since the mid-1990s, the global steel industry had exhibited a brisk and impressive pace of restructuring and consolidation. A spate of mergers and acquisitions had characterised the steel sector. It was estimated that by the end of 2006, the top ten steel producers represented about 28% of the global production. The share was expected to rise up to 35% in 2010, implying only three-four players producing more than 80 million tons, and five-six players producing between 40-50 million tons. The key drivers behind the consolidation of steel industry included reduced overcapacity, cost control, better negotiation, and better management of the balance between demand and supply as the larger the producers were, the more they were able to adapt production fluctuations in demand. It was further believed that the global consolidation would continue to be a factor shaping the steel industry resulting in greater discipline in it. However, some analysts were skeptical about the overall implications of the consolidation on the steel industry. Many concerns were raised about the consolidation wave such as “Is bigger necessarily better?”

The case discusses the consolidation in the global steel industry, major trends of consolidation and the key drivers behind it. The case also highlights issues such as, is bigger necessarily better? What are the likely future trends in the steel industry?

Pedagogical Objectives:

  • An outlook of global steel industry
  • Mergers and acquisitions in the global steel industry
  • The factors behind consolidation.

Keywords : Consolidation; Steel Industry development; steel Production; Total Shareholder Return; Value Chain; Arcelor-Mittal; Baosteel; Mergers,Acquisitions,Alliances Case Study; Fragmentation; Cyclicality; Investment Trap; Global Steel Industry; Regional Champions; Niche Specialists; Global Player; Steel Cycle

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,

©2020 - 25 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap