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Steel Market Research Report - Forecast till 2030

Steel Market: Information by Type (Flat and Long), Product (Structural Steel, Prestressing Steel), Application (Building & Construction, Automotive, Electrical Appliance) and Region (Asia-Pacific, Europe, North America, Latin America and the Middle East & Africa) - Forecast till 2030

ID: MRFR/CnM/4019-CR | February 2021 | Region: Global | 188 Pages         

Steel Market

The MRFR report suggests that the global steel market is projected to cross over USD 1.43 Trillion by the end of 2030 while flouring at a CAGR of 3.47% during the review timeframe.

Segmentation

By Type Flat Long
Product Structural Steel Prestressing Steel
Application Building & Construction Automotive Electrical Appliance

Key Players

  • ArcelorMittal (Luxembourg)
  • POSCO (South Korea)
  • Shangang Group (Spain)
  • NSSMC Group (Japan)
  • China Baowu Group (China)
  • HBIS Group (China)
  • Tata Steel Group (India)
  • Nucor Corporation (US)
  • Hyundai Steel Company (South Korea)
  • China Steel Company (Taiwan)

Drivers

  • Increasing infrastructural activities both in the commercial
  • Residential construction
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Steel Market Overview


The MRFR report suggests that the global steel market is projected to cross over USD 1.43 Trillion by the end of 2030 while flouring at a CAGR of 3.47% during the review timeframe.


Steel refers to an alloy derived from iron with usually a few tenths of a percent of carbon to enhance its fracture resistance and strength compared to other forms of iron. Several other elements may be added or present. Stainless steels, which are oxidation and corrosion-resistant, typically require an extra 11% chromium. Due to the low cost and high tensile strength of steel, it is used in electrical appliances, cars, ships, infrastructure, weapons, machines, trains, tools, and buildings. The global steel market has witnessed rapid growth in the pre-pandemic times. With the prevalence of the COVID-19 pandemic, the market is growing at a gradual pace. However, the business is picking up pace with the administration of vaccines and booster shots worldwide. With the rapid urbanization and industrialization across the globe, the market is hoping to witness a surge in demand for steel over the coming years. On the other hand, the volatility in the steel prices and the growing intensity of the competition is likely to impede the market's growth over the forecasted era.


COVID-19 analysis


COVID-19 is a dangerous virus. It’s the postmodern world’s version of the Bubonic Plague (5th century A.D.) and the Black Death (14th century A.D.) Unlike as is the case with the previous two plagues, most people who got COVID-19 recovered from it rather quickly. The issue was that it could cause serious health problems in some of those who recovered. It also caused serious health problems for some of the people who got it and even resulted in more than a few deaths. Finally, many of those who recovered got it again a few months later since the antibodies were short lived.


Governments around the world sought to contain the spread of this virus by imposing lockdowns and quarantines. These had limited effect so they were temporary. However, the impact that this had on many businesses was far from temporary. Many businesses were forced to either shut down temporarily or dramatically slow production down.


Companies in the global steel industry were no exception. Because construction and other end-user industries and sectors that use steel shut down or dramatically halted production, the demand for steel dropped dramatically. Many companies in the steel industry were forced to either temporarily shut down or dramatically scale back operations themselves.

Global Steel Market Revenue, by Product Type, 2019 (USD Bn) Global Steel Market Revenue, by Product Type, 2017 (USD Bn)
Sources: MRFR Analysis


Competitive landscape


The global steel industry remains highly competitive and fragmented. What accounts for this is the fact that there are few barriers to entry - it doesn’t take a lot of capital for a large company to start to make steel. Also, the market is very lucrative and is growing at a respectable rate. Many companies around the world are seeing this and that’s why they’re entering the market in large numbers every year.


The existing companies find that they have to invest heavily in research and development if they want to survive. They are also finding that entering into strategic partnerships with other successful companies and merging with/acquiring other successful companies also helps them create the sustainable competitive advantage that they need to remain profitable.


Nucor Corporation is a major American player in the global steel industry. It has managed to remain profitable and competitive by investing heavily in research and development. This, essentially, allowed it to create a sustainable competitive advantage.


List of companies



  • ArcelorMittal (Luxembourg),

  • POSCO (South Korea),

  • Shangang Group (Spain),

  • NSSMC Group (Japan),

  • China Baowu Group (China),

  • HBIS Group (China),

  • Tata Steel Group (India),

  • Nucor Corporation (US),

  • Hyundai Steel Company (South Korea),

  • China Steel Company (Taiwan)

    Global
    Steel Market Share, by Region, 2019 (%)


Global Steel Market Share, by Region, 2017 (%)


Sources: MRFR Analysis


Market dynamics


Drivers


Growth in the global steel industry is picking up, though at a much slower pace than it was in the pre-pandemic world. Now that a vaccine and booster shot for COVID-19 is being administered at a widespread pace business as usual is resuming. This is especially true for the global construction sectors - both residential and commercial. Also, many other end-user industries like automotive, electrical appliances, and others are starting to use steel more intensively in their overall operations.


Structural steel is used in the skeletons of buildings - both commercial and residential - around the world. It’s also extensively used in warehouses and bridges as support beams. As mentioned earlier, construction activities are picking up around the world. The United States’s construction industry has already reached the USD 1 trillion mark. It’s expected to be valued at USD 1.7 trillion in 2020.


Opportunities


This world is rapidly industrializing and urbanizing. This is creating unprecedented demand for steel. It’s also creating opportunities for manufacturers in the global steel industry. These manufacturers are upgrading facilities. This will allow them to create a new generation of steel that has more innovative applications, a higher tensile point, and is stronger and more durable than previous generations of steel were.


Restraints


Steel is a commodity, therefore it is subject to daily fluctuations in price. This is a key factor that is holding back growth in the steel market.


Challenges


The steel industry is highly competitive. Perhaps the biggest challenge that steel makers face lies in continuing to innovate in order to create the sustainable competitive advantage that will keep them profitable and financially viable in both the short and long term bases.


Cumulative growth analysis


The global steel industry is expected to have a CAGR of 3.47% until 2030. It’s expected to be worth USD 1.43 Trillion by then.


Technology analysis


Nucor Corporation is a major American player in the global steel industry. It has managed to remain competitive by creating a sustainable competitive advantage through research and development. This has allowed it to create a new generation of steel products that have far more innovative uses, are stronger, and are safer for use around humans and domestic animals.


Segment overview


By type


The global steel industry can be grouped into the following sub-segments based on type:



  • Flat steel

  • Long steel


The flat steel sub-segment had the largest market share in 2019. It is projected to have a CAGR of 2.5% during the time period that this report covers. Examples of flat steel products include slabs, coated steel, hot and cold rolled coils, tinplates, and heavy plates. The flat steel sub-segment is experiencing a modest but steady CAGR largely because it’s used to make pipes, various types of heavy machinery, tubes, appliances of all types, and all types of packaging. It’s also used heavily in the construction industry.


By product


The global steel industry can be grouped into the following sub-segments based on product:



  • Structural steel

  • Iron steel wire

  • Bright steel

  • Welding iron/rod

  • Ropes

  • Prestressing steel

  • Braids

  • Others


The structural steel sub-segment had the largest market share in 2021. It’s expected to register a CAGR of 3.15% for the time period that this report covers. The construction industry is starting to use structural steel more often to strengthen building frames, and bridge frames. It is also an invaluable material to use in freight cars, machinery, truck frames, truck parts, construction equipment, and transmission towers.


The prestressing steel sub-segment accounted for the second largest market share as of 2020.


By application


The global steel industry can be grouped into the following sub-segments based on application:



  • Automotive

  • Mechanical

  • Building and construction

  • Metal products

  • Mechanical equipment

  • Electric appliances

  • Domestic appliances

  • Other transportation


The construction sub-segment had the largest market share in 2019 with a total valuation of USD 417.3 billion. Its projected CAGR is 2.5% until 2027. This sub-segment is expected to be worth USD 487.6 billion in 2027. Retail construction is picking up worldwide, especially in developing nations. This is largely what is driving growth in this sub-segment.


Regional analysis


The global steel industry can be divided into the following region:



  • Asia-Pacific

  • North America

  • The European Union

  • The Middle East and North Africa


The Asia-Pacific region had both the largest regional market share and CAGR in 2019. In fact, its CAGR is projected to be 3.09% for the time period that this report covers. The steel industry in this region is expected to be worth USD 1.43 Trillion in 2030. Growth in this region can primarily be attributed to rapid growth in the construction industry, increased investment in infrastructure development, the rapidly growing automobile industry, and the fact that the electronics appliances industry is growing by leaps and bounds. India and China, especially, have some of the world’s fastest growing economies. These two nations have seen dramatic increases in construction and new infrastructure projects in recent years. It’s increased economic activity in these two nations that have been the main driver for the phenomenal growth in the steel industry in the Asia-Pacific region.


The European Union comes in second place both in terms of market share and CAGR. In fact, this region is expected to register a CAGR of 2.30% during the time period that this report covers. Germany happens to have one of the strongest and fastest growing economies in the European Union. Therefore, it is no surprise that it commands the lion’s share of the steel market in Europe. This is expected to continue for the time period that this report covers. Central Europe is also seeing strong growth in its regional steel market. The reason for this is attributed to dramatic increases in construction and new infrastructure projects.


The Middle East and North Africa is projected to have the weakest growth and market share for the forecasted time period. Yes, the Middle East and North Africa have relatively rapidly growing economies. This is what is driving growth in the construction industry and hence, what is driving growth in demand for various types of steel products. This market is expected to be worth USD 74.8 billion in 2027


Recent Developments



  • February 2022- Severstal, a Russian steel and mining group, announced its plans to provide several bands of lower emissions "green steel" products, referring to growing customer demand for sustainably manufactured products and further clarity about carbon reductions. In the Green Steelmaking webinar, the head of the environment at Severstal said that the group was operating tightly with the steel marketing team to tap into increasing customer demand for low emissions steel and produced a green steel methodology for its product offering Olga Kalashnikova.

  • The company will provide steel coils and pipes with lesser carbon intensity and manufacture products with customized customer specifications around carbon intensity. The group plans to provide four distinct low emissions steel categories with moderately lower carbon intensities, with a net zero product using carbon emissions offsets.


Report overview


The CAGR for the global steel industry is projected to be 3.47% by 2030. The market is expected to be valued at USD 1.43 Trillion by then. The construction industry is growing rapidly and this is largely what’s driving growth in the industry. The Asia-Pacific region has the highest CAGR and largest market share. This is expected to continue for the time period that this report covers.



Report Scope:

Report Attribute/Metric Details
  Market Size   2030: USD 1.43 Trillion
  CAGR   3.47% (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Billion)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Product, Application
  Geographies Covered    North America, Europe, Asia-Pacific, Latin America and Middle East & Africa
  Key Vendors   ArcerolMittal (Luxemborg), POSCO (South Korea), Shangang Group (Spain), NSSMC Group (Japan), China Baowu Group (China), HBIS Group (China), Tata Steel Group (India), Nucor Corporation (US), Hyundai Steel Company (South Korea), China Steel Company (Taiwan)
  Key Market Opportunities   With the rise in construction activities in developed and developing economies
  Key Market Drivers   The various factors supporting the demand include increasing infrastructural activities both in the commercial and residential construction


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Frequently Asked Questions (FAQ) :

The global steel market is set to touch USD 1.43 Trillion by 2030

The global steel market is expected to expand at 3.47% CAGR from 2021 to 2028.

China Baowu Group, NSSMC Group, POSCO, Nucor Corporation, Hyundai Steel Company, Shangang Group, ArcerolMittal, China Steel Company, HBIS Group, and Tata Steel Group

Asia Pacific’s dominance is the outcome of the rising steel demand in infrastructural and construction development, and the increase in automotive production