Case Study - Market Study

Market Study for a Middle East Steel Trader

 

 

 

 

A case study of our market and financial feasibility services

A Middle East-based steel trading company that currently exports various semi-finished steel products including billets and wire rods to Europe was considering establishing a stockholding operation / service centre facility in Europe.

The new depot was intended to facilitate expansion of the company's steel exports and ultimately lead to the creation of a subsidiary company in Europe with a network of associated service centres businesses.

 

 

yellow cranes in shipping port over ship

 

 

 

The company required a preliminary concept analysis in order to establish a preferred depot location, bearing in mind:

  • Locations of major steel end user industries
  • Transport costs to potential customers
  • Taxes, duties and local administrative costs
  • Ease of banking and financial operations
  • Potential regulatory concerns

The consultants undertook a statistical analysis of recent steel trade volumes for European countries. Steel market sales routes were examined, with research centred on:

  • Transport costs to potential customers
  • Taxes, duties and local administrative costs
  • Ease of banking and financial operations
  • Potential regulatory concerns

The consultants also prepared an outline of possible depot locations in Europe and a short-list the desirability of potential steel service centre locations at European port locations in Italy, UK and Germany.

The consultants also provided a preliminary indication of:

  • Status as free zone or special zone for economic development
  • Proximity to major steel end user industries
  • Applicable taxes, duties
  • Potential disadvantages