Industry Analysis & Industry Trends
Industry operators have struggled to contend with difficult operating conditions over the past five years. As a result, revenue is expected to decline at a compound annual rate of 12.3% over the five years through 2016-17. Domestic demand for steel has remained below pre-crisis levels, contributing to the decline in revenue. Global demand for steel fell during the latter part of the period, fuelled by a slowdown in China, and hampered industry performance. Industry exports also fell because overseas rivals were able to produce steel at considerably lower costs. This was because industry operators are faced with high energy costs and additional charges related to climate change policies. Meanwhile, import competition increased strongly and compounded the problems faced by the industry... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Iron and Steel Manufacturing industry has a high level of market share concentration. The top four companies are expected to have a combined market share of 89% in 2016-17. The largest industry operator, Tata Steel Europe Ltd, accounts for 58.3% of revenue, which indicates its dominance. However, the company's market share fell after it sold the Scunthorpe steelworks in May 2016 to Greybull Capital. The industry has a handful of major players operating alongside a very large number of small operators. Nevertheless, market share concentration varies somewhat by product segment and geographic location.
In 2016, approximately 81.9% of industry operators employed fewer than 10 members of staff. Meanwhile, only 2.8% of firms employed more than 100 people. The.. purchase to read more