Market Sizing - US Steel Market

Market sizing
New answer on Mar 06, 2020
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Anonymous A asked on Mar 01, 2020

Hi, I'm wondering how to do a market estimation on US steel market.

I'm thinking whether it's possible to assume that steel is used to build buildings.

And then I will do an estimation of the total buildings built per year and the average

steel needed to build a building.

Would there be a better way to get a more accurate figure?

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Andrea
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replied on Mar 06, 2020
OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.

Hi buddy,

Estimation cases can be solved with 2 approaches:

1. Demand side: as was suggested
2. Supply side: not really feasible in this case as the steel supply is hardly constrained (it is a commodity and can be purchased from other countries)

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Anonymous B replied on Mar 01, 2020

You should categorize what steel is used for, e.g. buildings & infrastructure, cars, transport sector, appliances for home (metal, electric equipment etc.)

Then calculate one sector, how big is it in reference to the whole market (in %) and extrapolate to 100 % for the whole steel market.

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Andrea gave the best answer

Andrea

OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.
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