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Two Fast-growing Cities That Should Be On the Radar of Steel Suppliers

By John V

Republish: EasyPublish™
Published: 26Feb2012
Word count: 496
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Even as financial crises and worldwide economic instability create uncertainty about prospects for growth, many countries and cities around the world are still developing at impressive rates. Booms in urban development, construction and infrastructure in the world's fastest-growing cities are a promising sign for steel suppliers serving export markets around the world. Global steel consumption in 2011 succeeded initial forecasts, and market analysts predict that the 2012 consumption of steel will be even greater. Let's take a look at some of the cities that are experiencing high rates of growth, and are thus likely to use steel in the process.

Meeting most people's expectations, the consensus fastest-growing city is in China. The city of Beihai, located on the country's southern coast, is expected to grow at over 10.58% annually. China is the world's largest steel consuming country, putting steel towards development projects like construction, property development, and infrastructure. With its population likely doubling within the next seven years, Beihai will exemplify the nationwide trend of using steel to support massive population growth and rural-to-urban migration. Add to this the Beihai's deepwater port, and its status as an upcoming nexus of trade and development make it a fitting target for businesses dealing in steel, aluminum, and sheet metal supply.

The second fastest-growing city is Ghaziabad, India, located just east of New Delhi, the country capital. Because of the capital's own massive expansion, people looking to live and work in the area have flocked to Ghaziabad because of its ability to accommodate the ever-growing population and workforce. Ghaziabad's attraction of the working classes implies a boom in infrastructure and housing for the city's 4.6 million-and-counting residents. Steel's role in large-scale housing and infrastructure development makes the city a good target market for steel suppliers.

India, like China, is facing a massive expected growth in steel consumption. Projections have ranged as high as a doubling of the country's demand for steel by 2015, to 122 million tons, from the current level of about 70 million tons. But a caveat is that India is largely self-sufficient in the production of iron ore, which forms the basis of steel production. In this light, the market for steel in Ghaziabad and other Indian cities might be more focused on finished and high-quality steel goods manufactured in countries with more advanced economies.

Of course, there are costs associated with all this growth. Even though resources are used more efficiently on a per capita basis in cities, the overall increase in demand for resources can strain ecosystems, stores of natural resources, and municipalities' ability to provide services to growing populations. Metal suppliers furnishing the materials and products that underpin urban growth are not necessarily in a place to address these concerns, but one positive step is to form strong business ties with countries that have strong government and citizen awareness of the promises as well as the challenges of urbanization.

Steel suppliers should be aware of global trends in steel consumption. Looking at some of the world's fastest-growing cities can shed light on how steel is being used worldwide.

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