Large-Scale Residential Construction and Infrastructure Projects Account for the Lion’s Share of Consumption in the Steel Market

Introduction

The global steel market size was valued at USD 955.84 billion in 2023. It is projected to reach USD 1247.1544 billion by 2032, growing with a CAGR of 3% during the forecast period (2024–2032).

Steel: The Lifeblood of Many Verticals Vital to an Economy

Be it buildings, infrastructure, automobiles, or machinery, steel plays a key role in industries. The four different types of steel — carbon steel, alloys steel, stainless steel, and tools steel — find distinctive applications. Low carbon steel is most commonly used in the automobile sector for building body components, the construction sector for bridge components and pipelines, and the packaging industry for food cans.

Market Dynamics

Construction Activities: The Key Factor Expected to Lead Steel Consumption in Coming Years

Construction projects consume the highest amount of steel, followed by transportation, which includes shipbuilding, automotive parts, ad appliances, railway tracks and trains, etc. Rapid urbanization has paved the path for more residential construction and infrastructure development, bolstering the demand for raw materials such as steel. Upcoming infrastructure projects, such as the tunnel projects in North America, are expected to accelerate demand in years to come.

Shipbuilding: A Sub-Segment of Transportation That Accounts for Substantial Steel Consumption

The shipbuilding industry also demands excessive volumes of steel for ships and cargo construction. The building of larger hi-tech vessels can cost as much as USD 200 million. The operation of merchant ships contributes an anticipated annual income of over half a trillion USD in terms of freight rates. Apart from passenger and cargo ships, the total export value of cruise ships, excursion boats, and ferry boats amounts to USD 77,100 million. The top exporters of this category ships are Italy with USD 26,600 million, Germany with USD 17,400 million, and Finland with USD 99,700 million export value.

Regional Analysis

China, Japan, & Russia: The Leading Producers of Steel Globally

China and Japan are the leading exporters of steel. In 2017, they collectively produced 935.7 million metric tons of crude steel, followed by the U.S. at 104.7 million metric tons. China has a ten times higher steel-producing capacity than the U.S. India and Russia produced about 101.4 and 71.3 million metric tons, respectively. The U.S. and Germany are at the forefront in terms of imports. In 2018, China was the largest producer of steel; however, at present, the coronavirus outbreak has disrupted the country’s steel production. 

Competitive Players

1. Nucor Corporation
2. Shougang Group
3. Hyundai Steel Co. Ltd
4. ArcelorMittal SA
5. Kingspan Group
6. Jiangsu Shagang Group
7. POSCO, Shangdong Iron and Steel Group Co.Ltd
8. Gerdau S.A
9. Tata Steel
10. Maanshan Iron and Steel
11. Hesteel Group
12. Nippon Steel
13. Wuhan Iron and Steel Cor
14. Baosteel Group
15. Thyssenkrupp Steel Europe AG

Recent Developments

Recent Developments

• July 2022- Nucor Corporation agreed to buy Summit Utility Structures LLC and Sovereign Steel Manufacturing LLC, manufacturers of metal poles and other steel structures for utility infrastructure and highway signage.
• May 2022- ArcelorMittal purchased multiple steel scrap recycling facilities from environmental services and recycling provider ALBA International Recycling. This transaction involves ten scrap yards in the south of Germany, owned by three distinct companies: ALBA Electronics Recycling, ALBA Metall Süd Rhein-Main, and ALBA Metall Süd.

Segmentation

1. By Product Type
   1. Carbon steel
   2. Alloy steel
   3. Stainless steel
   4. Tool steel
   5. Structural Steel
   6. Prestressing Steel
2. By Application
   1. Industrial Structures
   2. Building and Construction
   3. Automotive
   4. Electrical Appliance
   5. Tools and Machinery
3. By Steel Type
   1. Flat
   2. Long