Subject category:
Economics, Politics and Business Environment
Published by:
IBS Research Center
Length: 13 pages
Data source: Published sources
Abstract
The reconstruction of infrastructure across the world after the Second World War prompted the steel industry to rise sharply. Demand exceeded supply resulting in high profitability which translated into capacity augmentation. But since the 1970s demand plummeted, resulting in over capacity and high cyclicality in the industry. The industry regained from 2002 due to: (1) China''s booming economy; (2) higher economic developments in other BRIC (Brazil, Russia, India) countries; (3) the emergence of Central and Eastern European countries; and (4) rapidly developing economies and positive economic developments in TRIAD (Europe, USA and Japan) etc. Analysts were sceptical about the long-term sustainability of the industry. It is vital for the senior managers and policy makers in the steel industry to understand the dynamics of this industry and to shape their strategies accordingly.
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Abstract
The reconstruction of infrastructure across the world after the Second World War prompted the steel industry to rise sharply. Demand exceeded supply resulting in high profitability which translated into capacity augmentation. But since the 1970s demand plummeted, resulting in over capacity and high cyclicality in the industry. The industry regained from 2002 due to: (1) China''s booming economy; (2) higher economic developments in other BRIC (Brazil, Russia, India) countries; (3) the emergence of Central and Eastern European countries; and (4) rapidly developing economies and positive economic developments in TRIAD (Europe, USA and Japan) etc. Analysts were sceptical about the long-term sustainability of the industry. It is vital for the senior managers and policy makers in the steel industry to understand the dynamics of this industry and to shape their strategies accordingly.