Metal is a group of elementary substances characterized by high strength and better electrical and thermal conductivity. There are mainly two types of metals which include ferrous and non-ferrous. Ferrous metals include steel and cast iron and non-ferrous metals include aluminum, zinc, copper, nickel, lead, tin, titanium and alloys, including brass. These substances have significant use in several industries, such as construction, automobile, chemical, oil & gas, electronics, and medical equipment. Owing to its potential applications in different industries, the demand for metal products has witnessed significant growth over the years. For instance, the World Steel Association forecasted on its release of Short Range Outlook on April 2019 that the global demand for steel will reach 1,735 million tonnes in 2019, a rise of 1.3% over 2018.

The share of China in the global production of crude steel reached 51.3% in 2018 from 50.3% in 2017. The country produced 928.3 million tonnes of crude steel in 2018. In India, the production of crude steel in India was 106.5 million tonnes, increased by 4.9% over 2017. With this increased production, India has taken the position of Japan as the second major steel-producing country across the globe. The major crude steel production companies include ArcelorMittal, China Baowu Group, and Nippon Steel Corp. with 96.4 million tonnes, 67.4 million tonnes, and 49.2 million tonnes, respectively.

Currently, the global metal industry is facing challenges due to the COVID-19 outbreak. The demand for steel is expected to decline significantly due to lockdown effect within several countries, including Russia, India, Italy, and China. Several automobile companies have shutdown their manufacturing operations due to the government orders to suspend production. For instance, Daimler and Volkswagen declared recently that they will temporarily shut down production of vehicle and engine at its factories in Europe due to the coronavirus outbreak.

Likewise, Fiat Chryslers and Ferrari have also shut down their operations across countries. As a result, the automobile production of these companies has been stopped or declined, which in turn, restricted the demand for metal products, including aluminum, iron, and steel. The important metal properties which make them ideal for use in vehicle manufacturing include lightweight, recyclability, and strength. Therefore, the automobile industry is one of the major consumers of metals and the decline in industrial production will thereby lead to a reduction in the prices of metals.

The global metal industry is classified based on types, including ferrous and non-ferrous metals. Ferrous metals are being significantly affected by the coronavirus epidemics as the production of steel in certain countries witnessing fall due to COVID-19 effect. For instance, in March 2020, Arcelor Mittal decided to temporarily shut down its production in Italy with effect due to the devastating impact of coronavirus in the country. In addition, stoppage or slowdown of mining operations has further increased the concerns regarding the availability of raw material for metal production. Supply chain disruptions are also a crucial factor affecting metals production capacity.

Geographically, the global metal industry is segmented based on key regions, including North America, Europe, Asia-Pacific, and Rest of the World. Asia-Pacific metal industry is significantly affected by the coronavirus outbreak due to shutdown of industrial facilities and a decline in global trade. Chinese producers have been reported a decline in steel production due to the impact of COVID-19 outbreak. China Baowu Steel Group anticipates the production to decline by 5% in the first quarter of 2020 amid COVID-19 effect.

As per the United Nations Conference on Trade and Development (UNCTAD), the China Manufacturing Purchasing Manager’s Index (PMI) declined by nearly 22 points in February 2020. PMI is highly associated with exports, and this falling indicates a decrease in exports of nearly 2% on a yearly basis. A decline in the supply of intermediate inputs by China will likely impact the productive capacity, as well as the countries whose exports are relied heavily on Chinese suppliers. Other metal producing countries, including the US, Japan, and India may take advantage of the reduction in Chinese exports, as the demand for ventilators is growing significantly.  

Key companies whose business operations are affected by COVID-19 pandemic include ArcelorMittal, China Baowu Steel Group Corp., Ltd., Nippon Steel Corp., and The National Copper Corp. (Codelco). Codelco, a Chilean copper miner declared that the reduction in copper price has put sone of its projects at risk. The company has a $40-billion, 10-year upgrade planned for its mines across the country for maintaining output regardless of quickly falling ore grades. However, the company declared that it would cut its operations to meet the state of emergency declared by the government to limit the spread of the coronavirus.

Research Methodology

OMR global recently published a report addressing the impact of COVID-19 on the global metal industry. The study is incorporated by extensive primary and secondary research conducted by the research team. Secondary research has been conducted to refine the available data. Different approaches have been worked on to derive the market value and market growth rate. In the report, the analysis of the country is provided by analyzing various regional players, laws and policies, consumer behavior and macro-economic factors. The report includes analysis of different regions and countries to study the effect of COVID-19 on the metal industry. Besides, an expected recovery timeline of the industry will also be included with the best- and worst-case scenario which will aid clients to take their future steps in the decision-making process.

Sources Include

• Financial reports of companies involved in the market
• Whitepapers, research-papers, and news blogs
• Company websites and their product catalog
• Government Organizations Reports

The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

The Report Covers

• Comprehensive research methodology of the global metal Industry.
• This report also includes a detailed and extensive market overview with key analyst insights.
• An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
• Analysis of regional regulations and other government policies impacting the global metal Industry.
• Insights about market determinants that are stimulating the global metal industry.
• Detailed and extensive market segments with regional distribution of forecasted revenues.
• Extensive profiles and recent developments of market players.