South Korea Carbon Steel Market Overview, 2030

The South Korean carbon steel market has evolved significantly within the global framework, shaped by technological advancements, industrial demands, and manufacturing capabilities. Originating from the country’s push to develop a robust steel industry, carbon steel is a combination of iron and carbon, with the carbon content typically ranging between 0.12% and 2.0%, influencing its strength, flexibility, and hardness. Unlike alloy steels, carbon steel does not contain substantial amounts of other elements such as chromium or nickel, making it both cost-effective and versatile for a variety of applications. This material can be distinguished by its varying grades, determined by its carbon content and intended usage, which affects properties like tensile strength and ductility. It’s primarily produced using a blast furnace method or electric arc furnace technology, which allows for large-scale and efficient production. In South Korea, carbon steel is widely employed in industries such as automotive, construction, machinery, and shipbuilding, thanks to its optimal balance of strength and malleability. The steel’s key characteristics include high hardness, good wear resistance, and excellent tensile strength, while still being relatively easy to process and shape. However, one limitation of carbon steel is its susceptibility to corrosion without proper coating or treatment, which can be a challenge in harsh environmental conditions. Technological innovation, such as the development of advanced alloying techniques and surface treatments, has significantly improved the steel’s resistance to rust and wear, extending its lifespan and making it even more desirable in high-demand applications. Market drivers include South Korea’s advanced manufacturing sector, the increasing demand for high-quality infrastructure, and the automotive industry's need for lightweight yet durable materials, all of which contribute to carbon steel’s rising popularity.

According to the research report, ""South Korea Carbon Steel Market Overview, 2030,"" published by Bonafide Research, the South Korea Carbon Steel market is anticipated to grow at more than 5.04% CAGR from 2025 to 2030. The carbon steel market in South Korea is experiencing steady expansion, driven by the growing demand from various industries. The sector's growth is significantly influenced by South Korea’s advanced manufacturing and automotive industries. Carbon steel's versatility and cost-efficiency make it essential for applications such as construction, shipbuilding, and automotive production. However, the COVID-19 pandemic impacted supply chains and manufacturing, leading to temporary disruptions in production and consumption patterns, though recovery is on track. In 2024, the industry is seeing resurgence, with the government supporting infrastructural development and automotive innovations. Key players like POSCO, Hyundai Steel, and Dongkuk Steel dominate the local market, differentiating their offerings through advanced technologies and product quality enhancements, while focusing on branding and strategic partnerships. These companies leverage a strong presence in the domestic market, maintaining competitive pricing and emphasizing sustainable practices to enhance their visibility. Geographically, areas like Pohang and Incheon are major hubs for carbon steel production, where consumption is also high, driven by large-scale industrial activities. The automobile sector is the largest consumer, followed by construction and energy industries, which rely heavily on carbon steel for structural applications and machinery. Emerging trends such as automation in steel manufacturing and increased use of high-strength carbon steel are contributing to market growth, as industries seek lighter, stronger materials.

In South Korea, the carbon steel market is characterized by various types of steel, each tailored to specific applications and manufacturing processes. Low carbon steel, often referred to as mild steel, is defined by its relatively low carbon content, usually ranging from 0.05% to 0.25%. This makes it more ductile and easier to shape compared to other steel grades. It is produced by using iron ore in a blast furnace, with minimal alloying elements. Due to its malleability, it is commonly used in the automotive industry, construction, and manufacturing of household appliances, such as pipes, sheet metal, and structural components. The material’s key advantages lie in its ease of formability, cost-effectiveness, and good weldability, although its lower hardness makes it less suitable for high-wear environments. For instance, car body panels and structural beams in buildings are often made from low carbon steel. On the other hand, medium carbon steel contains between 0.25% and 0.60% carbon, offering a balance between strength and ductility. The higher carbon content results in increased hardness and tensile strength, making it more appropriate for tools, machinery, and automotive components. This steel type is generally produced by heating the raw materials to high temperatures and then adjusting the carbon content through carburizing or heat treatment processes. Common applications include gears, shafts, and axles in vehicles. While medium carbon steel offers superior mechanical properties over its low carbon counterpart, it can be more challenging to weld and shape, and its corrosion resistance is lower unless treated. High carbon steel, with carbon content ranging from 0.60% to 1.00%, is known for its exceptional hardness and strength, ideal for cutting tools, high-strength wires, and blades. The steel’s hardness comes at the cost of increased brittleness, making it more prone to cracking under stress.

Carbon steel in South Korea finds diverse applications across multiple industries, each benefiting from its unique properties. In the building and construction sector, low and medium carbon steels are predominantly used for structural components, reinforcing bars, beams, and columns. These types of carbon steel are selected for their excellent combination of strength, formability, and cost efficiency, essential for the creation of durable and stable frameworks. Low carbon steel, in particular, is favored for its ease of welding and ability to handle stress without cracking, making it ideal for structures that need to withstand significant loads. The flexibility of medium carbon steel also makes it suitable for construction machinery and equipment, offering added strength while still being malleable enough to form complex shapes. In the automotive and transportation industries, medium and high carbon steels are more commonly utilized. Medium carbon steel, known for its balance of toughness and wear resistance, is used in parts such as axles, gears, and crankshafts, where durability and performance are critical. High carbon steel, with its exceptional hardness, is ideal for components like brake discs and springs that require high strength and resistance to wear. The ability of these steels to withstand stress and high temperatures makes them indispensable in vehicles, ensuring safety and long-term performance. In the realm of industrial equipment, medium and high carbon steels are often chosen for machinery parts such as cutting tools, shafts, and gears, where hardness and resistance to abrasion are paramount. These materials provide the strength needed to endure repetitive motions and friction, which is essential for maintaining machinery reliability in heavy-duty operations. Lastly, carbon steel also plays a vital role in various other sectors, such as energy production, consumer goods, and household appliances. Low carbon steel is commonly used for the manufacturing of appliances due to its ease of shaping, cost-effectiveness, and sufficient durability for everyday use, ensuring products like refrigerators and washing machines last longer.

Carbon steel in South Korea is produced in various forms to cater to diverse industries, with each product type serving a specific function and providing unique advantages. Flat products, such as sheets, plates, and coils, are widely used in sectors like automotive, construction, and heavy machinery. These flat-rolled forms are essential for applications requiring flat, smooth surfaces, such as car body panels, structural cladding, and equipment manufacturing. They are typically produced by rolling hot steel slabs into thin, uniform sheets, which can be further processed or coated to enhance their performance. Without flat products, industries would face limitations in shaping components efficiently, leading to increased production costs and reduced structural integrity. Long products, including bars, beams, and rods, are integral to construction and civil engineering projects. These items are used for reinforcing concrete, building frameworks, and creating structural supports in buildings, bridges, and infrastructure. Long carbon steel products are shaped through extrusion or rolling, offering versatility in various load-bearing applications. Their absence would directly impact the strength and safety of large structures, as alternative materials may not offer the same level of durability or load resistance. Carbon steel pipes and tubes are crucial for transporting fluids, gases, and materials across industries such as oil and gas, water treatment, and industrial processes. These pipes are created by rolling or welding steel into cylindrical shapes, ensuring a secure and leak-proof conduit. Without carbon steel pipes, transportation of essential resources would be hindered, affecting global supply chains and industrial operations. Wires made from carbon steel are used in a variety of applications, from fencing to electrical cables and construction reinforcements. These wires offer flexibility, strength, and the ability to withstand tension, making them ideal for reinforcing structures, securing perimeters, or ensuring electrical connectivity. Without carbon steel wire, construction would lack vital reinforcement elements, and transportation infrastructure could be compromised.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Carbon Steel Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Low Carbon Steel (Mild Steel)
• Medium Carbon Steel
• High Carbon Steel & Ultra High carbon Steel

By Application
• Building and Construction
• Automotive & Transportation
• Industrial Equipment
• Others

By Product Type
• Flat Products
• Long Products
• Pipe and Tubes
• Wire Products
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.