In the continuously evolving world of industry, understanding market trends is crucial to staying competitive and maximizing profitability. The crude steel market presents pivotal opportunities, serving as the backbone to sectors such as construction, automotive, energy, machinery and others. Navigating this dynamic market, however, requires comprehensive, accurate, and predictive market data.
Our market research report provides an in-depth analysis of the crude steel market, examining crucial aspects such as market trends, growth drivers, and regional dominance. It provides an understanding of the industry's leading players, and identifies growth opportunities in the rise of the circular economy, wherein recovery, reuse, remanufacturing, and recycling of steel form an essential part. Our report also provides key insights into market deterrents, including the depletion of natural resources during steel production, and potential substitutes.
Whether you're a steel manufacturing veteran or a new entrant seeking to make informed business decisions, this report equips you with the market knowledge necessary to build successful strategies and thrive in the crude steel industry. Do not miss out on this opportunity to stay ahead in this globally significant market.
COVID-19 negatively impacted the market in 2020. Owing to the COVID-19 pandemic, the global sales of all vehicles in 2020 declined. Still, the market recovered in 2021, thereby enhancing crude steel consumption in the manufacturing of different automotive parts. In 2021, the demand for oil steel increased due to an increase in demand in various industries such as construction, tools and machinery, energy, transportation, and others.
- Over the medium term, increasing demand from the building and construction industry and recovering automotive production will likely drive the market's growth.
- On the flip side, the depletion of natural resources due to the production of steel and the availability of substitutes will likely hinder the studied market's growth.
- The growing trend of a circular economy, where steel is touted to make a significant contribution through its recovery, reuse, remanufacturing, and recycling, is likely to act as an opportunity for the studied market.
- The Asia-Pacific region is expected to dominate the world, with the most significant consumption from countries such as China and India.
Crude Steel Market Trends
Increasing Demand from the Building and Construction Industry
- Steel and its alloys are among the most common metals used worldwide in the construction sector. Steel is also used on roofs and as cladding for exterior walls. Products, such as roofing, purlins, internal walls, ceilings, cladding, and insulating panels for exterior walls, are made of steel.
- According to the United Nations (UN), around 50% of the global population resides in urban cities, which is projected to touch 60% by 2030. The pace of economic and demographic growth must be in harmony with the demand for commercial, residential, and institutional construction activities.
- According to China’s Five-Year Plan unveiled in January 2022, the construction industry in the country is estimated to register a growth rate of 6% in 2022. China plans to increase the construction of prefabricated buildings to reduce pollution and waste from construction sites. The prefabricated parts, either partially or wholly manufactured and then transported to the construction sites for assembly, may account for over 30% of the new construction in the country.
- According to the United States Census Bureau, the total value of construction put in place in the country has been increasing consecutively for the past decade. In 2021, the deal reached USD 1,626.4 billion, registering an 8.5% hike from the value (USD 1,499.6 billion) reached in 2020.
- According to the American Institute of Architects, the overall non-residential building construction in the United States is expected to grow to 3.1% in 2022. The structure of hotels is expected to rise by 8.8% in 2022 and of office spaces by 0.1%. The subsequent increase is expected to enhance the growth of the steel market during the forecast period.
- Therefore, such industry trends are expected to simultaneously drive the demand for steel in the building and construction sector.
The Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region has experienced favorable growth in the crude steel industry, with countries like China and India holding significant consumption shares.
- China is the largest producer of crude steel globally. According to the World Steel Association, in 2021, China accounted for more than 50% of the global production. In 2021, the country's annual crude steel production capacity stood at 1,032.8 million tons, declining by 3% compared to 1064.7 million tons produced in 2020. The strong growth of steel production in the country was due to the growing demand from various end-user industries.
- The expansion of the automotive segment in China is anticipated to benefit the demand for crude steel. According to the International Organization of Motor Vehicle Manufacturers (OICA), China is the largest producer of automobiles, accounting for about 32.5% of the global volume. The country alone produced 2,60,82,220-unit vehicles in 2021, registering an increase of 3% compared to 25,225,242 units in 2020.
- Moreover, the Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, valued at approximately USD 1.2 trillion, further expected to raise the market demand for crude steel.
- As per the reports by the Society of Indian Automobile Manufacturers, SIAM, India produced 4,399,112 units of passenger cars and light vehicles in 2021. Moreover, the government's reforms, such as 'Aatma Nirbhar Bharat' and 'Make in India' programs, are expected to boost the automotive industry.
- According to the IATA (International Air Transport Association) report, India is poised to become the third-largest global aviation market by the end of the forecast period. The country is projected to have a demand for 2,100 aircraft over the next two decades, accounting for over USD 290 billion in sales. Due to these factors, the demand for crude steel from the aerospace sector is expected to rise in the future.
- Therefore, all the above mentioned factors are likely to significantly impact the demand in the market studied in the years to come.
Crude Steel Market Competitor AnalysisThe market studied is fragmented, with moderately high competition among the market players to increase their shares. Some of the key companies in the market (in no particular order) include China BaoWu Steel Group Corporation Limited, ArcelorMittal, Nippon Steel Corporation, HBIS GROUP, and Shagang Group.
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Table of Contents1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Increasing Demand from the Building and Construction Industry
4.1.2 Recovering Automotive Production
4.2.1 Depleting Natural Resources and Availability of Substitutes
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Value and Volume)
5.1.1 Killed Steel
5.1.2 Semi-killed Steel
5.2 Manufacturing Process
5.2.1 Basic Oxygen Furnace (BOF)
5.2.2 Electric Arc Furnace (EAF)
5.3 End-user Industry
5.3.1 Building and Construction
5.3.3 Tools and Machinery
5.3.5 Consumer Goods
5.3.6 Other End-user Industries
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.4.2 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
5.4.4 South America
18.104.22.168 Rest of South America
5.4.5 Middle-East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 China Ansteel Group Corporation Limited
6.4.3 China BaoWu Steel Group Corporation Limited
6.4.4 China Steel Corporation (CSC)
6.4.5 Fangda Special Steel Technology Co. Ltd
6.4.6 HBIS GROUP
6.4.7 Hyundai Steel
6.4.8 JFE Steel Corporation
6.4.10 NIPPON STEEL CORPORATION
6.4.11 NLMK (Novelipetsk Steel)
6.4.12 Nucor Corporation
6.4.14 RIZHAO STEEL HOLDING GROUP CO. LTD
6.4.15 Steel Authority of India Limited (SAIL)
6.4.16 SHAGANG GROUP Inc.
6.4.17 Tata Steel Limited
6.4.18 United States Steel Corporation
6.4.19 Techint Group
6.4.20 Hunan Valin Iron And Steel Group Co. Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Trends of Circular Economy
A selection of companies mentioned in this report includes:
- China Ansteel Group Corporation Limited
- China BaoWu Steel Group Corporation Limited
- China Steel Corporation (CSC)
- Fangda Special Steel Technology Co. Ltd
- HBIS GROUP
- Hyundai Steel
- JFE Steel Corporation
- NIPPON STEEL CORPORATION
- NLMK (Novelipetsk Steel)
- Nucor Corporation
- RIZHAO STEEL HOLDING GROUP CO. LTD
- Steel Authority of India Limited (SAIL)
- SHAGANG GROUP Inc.
- Tata Steel Limited
- United States Steel Corporation
- Techint Group
- Hunan Valin Iron And Steel Group Co. Ltd