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Global Steel Sections Market - Growth, Trends, And Forecast (2023-2028)

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  • 150 Pages
  • March 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5759352
The size of Steel Sections market is USD 110.23 billion in the current year and is anticipated to register a CAGR of over 6% during the forecast period. The market is driven by the huge demand for steel sections at the infrastructure and construction project sites. Furthermore, the residential segment is also creating a huge demand due to its durability and anti-corrosive properties.

Key Highlights

  • Many metals and steel businesses in advanced markets have benefited from strong pent-up demand and high sales prices in 2021 and early 2022. As a result, profit margins increased, and financial resilience increased. Trade liberalization in the US's partial elimination of Section 232 tariffs on EU aluminum and steel imports should boost European production and exports. Fiscal stimulus has increased demand for metals and steel in key markets such as the United States and China.
  • Following a very high growth rate in 2021, US metals and steel output increased by about 5% in 2022, driven primarily by continued robust demand from residential construction, aerospace, transportation, and engineering. However, given high fuel costs and consumer price inflation, the decline in automotive sales in H1 2022 indicates dwindling demand for high-priced, metal-intensive consumer goods. Order backlogs persist in the face of supply chain constraints. While oil and gas prices have skyrocketed, strong demand allows metals and steel companies to pass on higher input costs. These industry benefits have made some US manufacturers return to their home countries to avoid further supply chain disruptions and improve price stability.
  • In August 2022, the price range for steel hollow sections in Europe narrowed, despite producers in the region pushing for higher prices due to alarming increases in energy costs. Further, current section prices are based on imported HRC from eastern and southeast Asia, or Turkey, which can take up to three months to arrive in Europe after an order is placed. The price of imported HRC, CFR main port Northern Europe, in May 2022 was EURO 850-920 (USD 891.20-964.59) per tonne. Some mills were also thinking about cutting production to help manage the effects of rising input costs.
  • Weathering steel is a term used to describe products made from billets and blooms that are primarily used in the construction industry. They are typically produced in electric arc furnaces. Weathering steel items include rebar, wire rod, merchant bars, rails, and sections. Factors such as rapid urbanization and infrastructure projects such as railways and bridges that require high-strength weathering steel are propelling the market growth.
  • However, fluctuations in raw material prices are expected to stymie market growth. Furthermore, the emergence of value-added rebar products, as well as an increase in infrastructure investments, are expected to provide growth opportunities for the weathering steel market in the coming years.
  • Although several nations declared the steel sector to be essential, the pandemic has significantly reduced demand for steel production. In an attempt to slow the spread of COVID-19, steel consumption in the automotive industry, one of the biggest consumers, has been reduced. At the same time, falling energy prices have resulted in significantly reduced demand from industries like oil and gas. The COVID-19 outbreak has caused many non-essential building projects to be put on hold, which has hurt steel demand.

Steel Sections Market Trends

Increased Demand for Steel Products

Higher energy and commodity prices, particularly for raw materials for steel production, will have a global impact, as will continued supply chain disruptions, which plagued the global steel industry even before the war. Furthermore, increased financial market volatility and uncertainty will deter investment. According to World Steel Association (Worldsteel) data, global steel production fell 5.1% year on year (y-o-y) to 162.7 million tonnes in April 2022. Since 2021, global output has been declining as China, which accounts for more than half of the output among the 64 countries whose data is used, has tended to overshoot.

Despite ongoing supply chain issues and COVID waves, recovery from the pandemic shock was stronger than expected in many regions in 2021. However, a sharper-than-expected slowdown in China resulted in lower global steel demand growth in 2021 and the outlook for 2023 is highly uncertain. The war in Ukraine and rising inflation have shaken confidence in the post-pandemic continued and stable growth environment. The magnitude of the conflict's impact will differ depending on the region's direct trade and financial exposure to Russia and Ukraine. Due to its reliance on Russian energy and geographic proximity to the conflict area, the EU suffers an immediate and devastating impact.

Steel demand in Japan has slowed as rising material costs and labor shortages have caused construction delays. Steel demand, on the other hand, will continue its moderate recovery in 2022, thanks to the non-residential construction and machinery sectors. Steel demand will continue to recover in 2023 as the automotive industry grows and supply chain constraints ease. Steel demand in South Korea has deteriorated and is expected to fall in 2022 due to reduced facility investment and construction. The alleviation of auto supply chain bottlenecks and an improved outlook for ship deliveries and construction will drive recovery in 2023. However, due to the weak global economy, the recovery of the manufacturing industry will be limited.

Huge Demand of Steel Sections in Asia-Pacific

Steel demand is expected to rise by 10% through 2022-2023, owing to the government's continued emphasis on road, rail, port, and airport construction. Steel exports from India will remain strong in the coming months as higher prices and regional demand encourage steelmakers to divert a portion of their output to exports. Because of the Russia-Ukraine war, input costs have risen, and businesses have been wary of higher raw material costs eroding their margins. Steel prices are no strangers to this occurrence.

The China Iron and Steel Association (CISA) recently warned that China's steel producers are facing their most difficult period yet, due to a slower-than-expected recovery in steel demand and mounting pressure from high production costs. Noting that many steel mill profit margins fell significantly in the first half of this year, the association conducted a study of the industry and identified the key points its members will need to focus on. According to the association, the total gross profits of CISA's 90 key steel mill members fell by 63.4% year on year to Yuan 93.6 billion (USD 13.9 billion) from January 2022 to July 2022, owing primarily to higher raw material costs and falling steel prices from depressed steel demand.

Steel Sections Market Competitor Analysis

The Steel Sections Market is fragmented with the presence of a large number of local and regional players, as well as global players. Some of the major players include Tata Steel, Vallourec, Yuantai Derun Group, Anyang Steel Group, Youfa Steel Pipe Group, and many others. The market is going through a lot of changes due to supply chain constraints and a shift in demand among consumers. Companies are working on increasing their production and quality of products with the advancement of technology.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Current Market Scenario
4.2 Market Overview
4.3 Market Dynamics
4.3.1 Drivers
4.3.2 Restraints
4.3.3 Opportunities
4.4 Value Chain/Supply Chain Analysis
4.5 Porters Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Technological Advancements in Steel Sections
4.7 Insights on Production and Demand for Different Steel Sections
4.8 Pricing Analysis of the Steel Sections Market
4.9 Impact of COVID-19 on the Market
5.1 By Product Type
5.1.1 Heavy structural Steel
5.1.2 Light Structural Steel
5.1.3 Rebar
5.2 By End-User Industry
5.2.1 Residential
5.2.2 Manufacturing
5.2.3 Aerospace & Automotive
5.2.4 Power and Utilities
5.2.5 Construction
5.2.6 Oil & Gas
5.2.7 Other End-user Industries
5.3 By Geography
5.3.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.3.2 North America United States Canada Mexico
5.3.3 Europe Germany United Kingdom Italy France Rest of Europe
5.3.4 Latin America Brazil Argentina Rest of Latin America
5.3.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Overview
6.2 Company Profiles
6.2.1 Tata Steel
6.2.2 Vallourec
6.2.3 Yuantai Derun Group
6.2.4 Anyang Steel Group
6.2.5 Youfa Steel Pipe Group
6.2.6 ArcelorMittal SA
6.2.7 POSCO Holdings Inc
6.2.8 Baoshan Iron & Steel Co Ltd
6.2.9 Nippon Steel Corp
6.2.10 Nucor Corp
6.2.11 Ansteel Group
6.2.12 Hyundai Steel*

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Tata Steel
  • Vallourec
  • Yuantai Derun Group
  • Anyang Steel Group
  • Youfa Steel Pipe Group
  • ArcelorMittal SA
  • POSCO Holdings Inc
  • Baoshan Iron & Steel Co Ltd
  • Nippon Steel Corp
  • Nucor Corp
  • Ansteel Group
  • Hyundai Steel