The global steel market is estimated to attain USD 962431.8 Mn and expand at an incremental compound annual growth rate over the forecast period which ends in 2023, reveals Market Research Future (MRFR) in a recently published research report. Steel is a key intermediate good used across diverse industries which leads to massive demand for steel.
With improvements in global industrial production, the global steel market is expected to pick up in the coming years. The demand for steel has grown manifolds in recent years since it is of strategic importance to various industries such as automotive, manufacturing, consumer durables and others. Rise in developmental and infrastructural activities across the globe is one of the critical determinants of the growth of the global steel market. More than half of the steel produced on a global scale goes into building and infrastructure. With the rapid rise in urbanization and population boom, infrastructural activities will continue to expand which will augment the growth of the global steel market since they are essential to the building of roads, bridges, stations, airports, and others.
Higher economic growth trend observed in various economies, especially the developing nations is expected to generate considerable demand for steel in varying proportions and augment the growth of the market. Stringent regulatory norms which promote energy-efficient and green buildings also contribute to the growth of the global steel market.
The automotive industry is a major end user of the global steel market and consumes massive amounts of steel for every new vehicle design. The ongoing drive for lighter weight vehicles coupled with increased focus on emission reduction further strengthens the demand for the global steel market. Heightened demand for stainless steel across the electronic appliances markets also contributes to the growth of the market.
However, a slowdown in chins, surging steel imports in the US and degrading oil prices are major hurdles for the growth of the global steel industry. The economic downturn in China coupled with overcapacity issues is expected to be a hindrance to the global steel market. Falling oil prices are likely to have a high impact on the growth of the global steel markets owing to the industry's exposure to the energy sector. Energy exploration companies are expected to reduce their capital expenditure budget to curtail costs which will slow down the growth of the global steel market.
• Maanshan Iron & Steel Company Limited
• JFE Steel Corporation
• Tata Steel
• JIANLONG GROUP
• China BaoWu Steel Group Corporation Limited
• HYUNDAI STEEL
• HBIS GROUP
• ThyssenKrupp AG
• SHAGANG GROUP Inc
• NIPPON STEEL & SUMITOMO METAL CORPORATION
In November 2018, Vale, Brazil's mining giant and a global leader in iron ore and nickel production, entered in a four-year contract with Emirates Steel, the largest producer of steel in UAE. Through the partnership, vale will supply iron ore pellets for the Arabian company's steel production in Abu Dhabi.
The global steel market has been segmented based on type, and application.
By type, the market has been segmented into long steel and flat steel. The flat steel segment is the largest segment and is expected to retain its dominance over the forecast period.
By application, the market has been segmented into building & construction, automotive, mechanical equipment, metal products, other transportation, electrical appliances, and domestic appliances.
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa are the key markets for steel. Among them, Asia Pacific accounts for over 66% of the global market share and is likely to retain its dominance over the forecast period. The rise in construction industry generates high demand for high-quality steel. In addition, the growth of end-use industries such as electrical appliances, and metal products will further aid the growth of the market over the forecast period.
Europe market for steel is expected to grow at a significant rate, Germany, Russia, and Italy being the key contributors to the market. Towering demand from the automotive, building & construction, and the electrical appliances sector drives the market in Europe.
The developed regions of North America and Latin America is expected to witness steady growth over the forecast period on account of rising in the volume of heavy and light duty vehicle production in the regions. Also, the high adoption rate of electrical and domestic appliances induce high demand for steel.
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