Steel Custom Solutions - Case Study

Need:
A consortium of trade associations representing machinery and equipment manufacturers wanted a comprehensive overview of the steel industry. Given that steel is the dominant material in manufacturing, the consortium wanted answers to two closely related questions: what caused steel prices to skyrocket in 2004, and were such factors permanent or transitory?

Solution:
To address the questions, Global Insight provided analysis of multiple individual influences including currency, capacity outages, raw materials costs, and changing demand patterns. A key component was evaluating the impact of China and other rapidly growing sources of steel production and consumption.

Not only did Global Insight provide analysis of all the factors influencing steel pricing and availability, but we delivered comprehensive supporting data. Our information included analysis and forecasts for:

• Volume: U.S. steel data for 40 products
• Price: steel products used in equipment manufacturing
• Analysis: steel production capacity
• Demand Forecasts: steel demand and major trade flows

Finally, the equipment makers requested a list of policy options being considered in Washington DC and internationally that would affect the global steel environment. We provided an objective overview of multiple policy initiatives, focusing on the implications for steel availability and prices. The impact of each policy initiative on steel makers and steel buyers was then evaluated.