Global Steel Market -2024-2031

Overview

Global Steel Market reached US$ 953.7 billion in 2023 and is expected to reach US$ 1,232.1 billion by 2031, growing with a CAGR of 3.3% during the forecast period 2024-2031.

The global steel market is still an integral component of the industrial sector, contributing significantly to global manufacturing, infrastructure development and economic growth. To meet the demands of many end-user sectors, the steel industry persists in adapting and innovating in the face of obstacles such as overcapacity, varying demand and changing trade dynamics.

Steel companies can take advantage of economies of scale, streamline processes and improve supply chain management through acquisitions. Steel producers can expand their product lines, boost customer support and strengthen their market position by combining similar industries or obtaining specialized skills.

For instance, in December 2023, After surpassing bidders including Cleveland-Cliffs and ArcelorMittal in an auction, Japan's Nippon Steel secured an agreement to purchase US Steel for US$14.9 billion in cash. U.S. Steel was also pursued by ArcelorMittal. At a mill owned by Nippon and ArcelorMittal in Alabama, semi-finished product or slabs, that are purchased from domestic and international vendors are processed to produce steel sheet products. Additionally, they are spending almost US$ 1 billion on an electric arc furnace. Therefore, Asia-Pacific based manufacturers contribute to the growth of the global product market with significant market share.

Dynamics

Investment Driving Production Capacity Expansion in the Steel Industry

Steel companies can increase their production capacity through investment by building new facilities or by renovating and modernizing their current ones. Because of their increasing capacity, the expanding capacities will meet the rising demand for steel products both domestically and internationally.

Nucor Corp. stated on February 21, 2024, that the development of a rebar micro mill in the Pacific Northwest will get funds of US$ 860 million, as approved by the board. It's still unknown where the mill is located. The mill will produce 650,000 Tons of steel rebar annually, will be the largest Nucor steel rebar mill ever constructed. With authorization from the relevant authorities, it is expected to be finished in two years. The steelmaker stated in a statement that the local rebar market is anticipated to continue to demonstrate strength against the backdrop of rising U.S. infrastructure investments as part of Biden's US$ 1 trillion infrastructure package.

Technological Collaboration Driving Innovation in Eco-Friendly Steel Production

Collaboration allows the stakeholders to share technological advancements and solutions in the developments of eco-friendly steel production. The knowledge sharing will have the significant potential to accelerate the development of more sustainable steel production methods, such as harnessing renewable energy sources, storage technology and enhancing recycling procedures.

Early trading on October 30, 2023 depicts a minor boost in Mukand's share price due to its collaboration with Tata Power Renewable Energy. A Power Delivery Agreement has been signed by the firms for a 43.75 MW AC Group Captive Solar project situated in Jamkhed, Maharashtra. In addition to meeting Mukand Limited's energy demands, this solar array is planned to produce 99.82 MUs yearly and improve the environmental friendliness of steel manufacturing processes. The group's captive solar power plant construction, operation and maintenance will fall under the purview of TPREL.

Trade Disputes and Protectionism

Foreign steel producers may find their access to markets restricted by governments that impose taxes or restrictions on steel imports. As a result, consumers and downstream sectors that use steel as a raw material may pay more as there is less competition in the regional and other local market place.

Global supply chains can be disrupted by trade disputes, which can cause logistical problems and delays in the delivery of steel products. The expansion of the steel market can also be hampered by long-term investment in additional capacity or infrastructure due to uncertainty surrounding trade rules and possible retaliatory actions.

Fluctuation Raw Material Costs

Price volatility for steel can result from changes in the cost of raw materials, which makes it challenging for manufacturers to bargain with clients or establish competitive selling prices. Customer demand can also be impacted by price volatility since companies may decide to defer purchases or look for substitute supplies in reaction to erratic price fluctuations.

Long-term investment in the steel sector may be discouraged by costs associated with raw materials being uncertain. In light of fluctuating input costs, steel producers might be reluctant to commit cash to new ventures or expansion plans, which would restrict the industry's potential for development and modernization.

Segment Analysis

The global steel market is segmented based on product, application, end-user and region.

Growing Crude Steel Production Drive Market

Crude steel is an essential component of many industrial manufacturing processes, including those that produce appliances, machinery, automobiles and ships. Crude steel is in greater demand as a raw material when industrial output levels expand internationally due to factors like economic expansion, technical improvement and rising consumer demand.

U.S.'s crude steel output increased 0.2% to 80.7 million metric Tons in 2023, but in December it surged 7.6% to 6.8 million metric Tons. In 2023, Russia's steel production increased by 5.6% year over year to 75.8 million metric Tons and by 4.3% to 6 million metric Tons in December. Therefore, burgeoning demand for crude steel primarily in construction sector segment captures the majority of the market shares in the total global market.

Geographical Penetration

China's Technological Advancements and Investments in Steel Sector

China has made significant investments to modernize its steel sector using cutting-edge technology and manufacturing techniques. The technological developments can be used to improve the productivity, sustainability and quality of steel production in a new manufacturing facility in China. The global steel market's best practices and standards may be impacted by this technological advancement, promoting overall growth and development.

In January 2023, as the nation ramps up infrastructure expenditure, SteelAsia Manufacturing and China Baowu Steel Group will collaborate to establish a 108 billion Philippine peso (US$ 1.98 billion) factory in the Philippines. The greatest steel producer in the nation, SteelAsia and the biggest steel producer globally, Baowu, will choose a site for the project as early as February. Every year, 3 million Tons of molten steel will be produced there and utilized to make completed steel products. Therefore, China is leading the regional steel market with majority of the global market shares.

COVID-19 Impact Analysis

The pandemic has impacted steel industry with substantial drop in the demand for steel, especially from industries that use steel including manufacturing & building and automobile industry. The demand for steel declined as a result of slower economic growth, postponed building projects and weaker consumer expenditure.

The COVID-19 pandemic and related lockdown measures, according to the World Steel Association, have had a major impact on global steel manufacturer' output volumes. In April 2020, China reported producing 85.0 million Tons of crude steel. Nothing has changed from the manufacturing in April 2019. Furthermore, 5-7% of vehicles produced globally are produced in Asia. In April 2020, South Korea's automobile output fell by 22% year over year, while car exports fell by 44%. Car shipments from the nation to US fell by 28% in April compared to the same month the previous year.

Russia-Ukraine War Impact Analysis

Iron ore and steel prices increased sharply during the Russia-Ukraine conflict, as Russia and Ukraine are major exporters of these commodities. Domestic steel price increases have so far been insufficient to cover cost inflation; however, the consumption lag indicates greater margins in the fourth quarter.

Ukraine and Russia are major providers of the global steel supply chain, supplying finished steel, semis and raw materials including coking coal and iron ore. Russia and Ukraine produce over 100 million Tons of steel annually and export around 37 million Tons, accounting for 8-9% of world net trade. In 2021, Ukraine exported 40 million Tons of high-grade iron ore and pellets, whereas Russia exported approximately 29 million Tons of iron ore.

By Product

• Crude Steel
• Finished Steel
  • Flat
  • Long
  • Specialty
• Stainless Sheet/Strip
• Stainless Plate
• Stainless Bar
• Stainless Rod
• Stainless Steel Wire
• Scrap Steel

By Application

• Pre-Engineered Metal Buildings
• Panels
• Roofs and Walls
• Bridges
• Industrial Structures
• Others

By End-User

• Automotive
• Construction
• Manufacturing
• Machinery and Equipment
• Consumer Goods
• Aviation & Marine
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In February 2024, The construction of US$ 1.5 billion steel mill at Manhize near Mvuma has been completed, with a probable commissioning date of June 10 this year.
• In December 2023, Imperial College London and Indian multinational Tata Steel have formed an agreement to setup a new GBP 10-million design investment manufacturing centre as part of efforts to develop innovative new technologies to help decarbonizes steel production.
• In January 2023, SteelAsia Manufacturing and China Baowu Steel Group will collaborate to establish a 108 billion Philippine peso (US$ 1.98 billion) factory in the Philippines.

Competitive Landscape

The major global players in the market include ArcelorMittal, Nippon Steel Corporation, Baosteel, TATA Steel, Steel Authority of India Limited (SAIL), Hyundai Steel Co., Ltd., JFE Steel Corporation, HBIS Group, ThyssenKrupp and POSCO.

Why Purchase the Report?

• To visualize the global steel market segmentation based on product, application, end-user and region, as well as understands key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of steel market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global steel market report would provide approximately 61 tables, 58 figures and 181 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies