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Electric arc furnaces are high-temperature furnaces, which uses high-voltage electrical arches to manufacture metals. Electric arc furnaces recycle iron, steel and other scrap into new products. Eclectic arc furnaces ranges from small units of approximately one-ton capacity and goes up to about 400 tons. EAF industries are smaller and are moderately expensive to construct as compared to an integrated steelmaking plants. Furthermore, electric arc furnaces are cost-efficient with the low production rates can be functioned alternatingly, while other types of furnaces are required to be operational at regular intervals.
Additionally, the enhancements in mining technologies has resulted in reduced prices of natural gas and non-cooking coal. Thereby, leading to lower production cost of DRI (Direct Reduced Iron) which are used with scrap steel, other scraps to produce crude metals. Thus, the increase in the production of DRIs is expected to be a key trend driving the growth of the global electric arc furnaces market in the coming years. The use of electric arc furnaces allows the metals to be manufactured from 100% scrap metals cold ferrous feed, also called as ' feedstock' that emphasise on the fact that for EAFs, scraps are measured feed type of material. This induces a major benefit as enormous reduction in the specific requirement energy (energy per unit weight) in order to produce metals.Another benefit that EAFs provide is flexibility: in blast furnaces one cannot diverge the production and the production process is never stopped, the process in EAFs can promptly get started and halted, allowing the mills to produce metals as per the demand.
Key Market Driver -
• Increasing Privatizations & Ownership in the Steel Industry • Regulations Supporting the Global Exchange of Machines and Metals
Key Market Restraint -
• Dependency on places with unlimited supply of electricity and metals scraps
Key players in the market have a dominant presence in the furnaces market, thus have good will and brand name to capture the unidentified regional electric arc furnaces market. Moreover, these players are expected to have significant expansion in their business owing to the robust business strategies such as targeting developing countries and economies for increased market share.
Some of the key competitors in the electric arc furnaces market include IHI Corporation, SMS group GmbH, DANIELI, Tenova S.p.A., Siemens, Electrotherm, JP Steel Plantech Co., Wuxi Dongxong Heavy Arc Furnace Co., Ltd., Primetals Technologies, IHI Corporation, ArcelorMittal & Systemchef.
Asia Pacific is expected hold the largest market share along with the highest growth rate in the coming years. This is owed to the continuous increase in the investments done by the companies in the region to increase the production capacity. Furthermore, Asia Pacific has the largest market of various industries that use metals in their products such as, consumer goods and electronics, automobiles etc., which also stimulates the growth of the market. Moreover, this region is the hotspots for the majority of the key players to gather enhanced market share. This is owed to the increased manufacturing activities in the countries such as China, India, Japan, & Korea.
Similarly, Middle East & Africa and Latin America is expected to be a prominent region for the growth of the electric arc furnaces market. This is owed to the presence of capital intensive companies, along with low cost of labour in the region. Moreover, in the past 5 years the region has invested a lot in industrial development, in order to increase the trade and volume of import and export of steel based products. Europe and North America on the other hand has showed a steady growth with minimal changes in the market structure. Also, the companies in the market are shifting their manufacturing facilities at developing economies, thus this region is expected to exhibit minor volatility in the coming years.
The ongoing COVID-19 pandemic is expected to impact the market significantly for the year 2020 owing to the halt in the manufacturing activities across the globe. Other than this, the market will volatile further in the coming years owing increased global trade tensions with China, which is one of the major country in the market.
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