Global Flat Steel Market - 2024-2031

Global Flat Steel Market - 2024-2031

Global Flat Steel Market reached US$ 433.8 billion in 2023 and is expected to reach US$ 651.0 billion by 2031, growing with a CAGR of 5.4% during the forecast period 2024-2031.

The flat steel market is mostly driven by the expansion of the manufacturing industry globally. There is a growing need for the infrastructure, machinery and other tools required for manufacturing as countries grow and become more industrialized. The durability, adaptability and affordability of flat steel make it an essential material for a wide range of applications in manufacturing, including equipment housings, storage tanks and machinery components.

Infrastructure development is a major factor driving the growth of the flat steel market. There is a huge demand for infrastructure projects, including residential buildings, business complexes, bridges and transit networks, due to the fast urbanization occurring globally. Because of its strength, adaptability and longevity, flat steel which is utilized in structural beams, columns, roofs and cladding materials is an essential part of the building of these infrastructures.

Asia-Pacific is among the growing regions in the global flat steel market covering more than 1/3rd of the market. Asia-Pacific's automotive industry is expanding rapidly due to growing disposable incomes and a rise in the market for passenger cars. As a vital component of body panels, chassis parts and other structural elements in the automobile industry, flat steel helps to drive the market's overall growth in the region.

Dynamics

Technological Developments in the Steel Sector

Innovation and increased efficiency in the flat steel industry are being driven by technological developments in steel manufacturing processes. Technological developments in energy efficiency, automation of processes and metallurgy have allowed steel manufacturers to improve product quality, cut costs and lessen their environmental effects. Thin slab casting and direct rolling are two examples of innovations that have greatly shortened production cycles and enhanced throughput, resulting in lower lead times and better productivity.

For Instance, in 2023, The Arvedi Group introduced Arvzero, the first carbon-neutral flat steel manufacturer in the world. Arvzero is the carbon steel that Acciaieria Arvedi produces at its facilities in Cremona and processes at its facilities in Trieste and Cremona. The steel is circular and made entirely of recycled scrap. It has zero waste since over 90% of the trash produced during manufacturing is recovered, helping to fulfill the Greenhouse Gas Protocol's first and second purposes, which are to reduce greenhouse gas emissions.

Growing Flat Steel Demand in the Construction Industry

The flat steel market is expected to increase in the next years due to the expansion of the construction sector. The economic sector that plans, designs, builds and maintains infrastructure and buildings is known as the construction industry. The sector comprises a wide range of activities, including civil engineering, commercial, industrial and residential construction projects.

For instance, the size of US construction sector grew from US$1.916 trillion in 2021 to US$2.016 trillion in 2022, according to the Bureau of Economic Analysis (BEA), a US-based government agency for industry data. Therefore, the steel flat market is being driven by the growth of the construction sector.

Price Volatility for Raw Materials

The price volatility of raw materials, especially iron ore, and coking coal, is a major impediment to the globally flat steel industry. Price strategies and the profitability of steel producers may both be severely impacted by fluctuations in these input prices. Raw material costs can be impacted by a variety of factors, including shifts in the dynamics of supply and demand, geopolitical unrest and currency fluctuations.

Additionally, the incapacity of steel companies to anticipate and successfully manage these swings frequently results in higher production costs and lower profit margins. Moreover, corporations may be reluctant to commit to large-scale projects or expansions in uncertain market circumstances, which would limit market development. The is another way that price volatility for raw materials might impede long-term planning and investment choices.

Sustainability and Environmental Concerns

Growing sustainability concerns and stricter environmental restrictions are the main challenges for the global flat steel sector. Due to its energy-intensive nature and substantial emissions of greenhouse gases, the manufacturing of steel exacerbates climate change and harms the environment. Global governments have introduced more stringent emissions standards and environmental laws to avoid these effects.

Furthermore driving steel producers to embrace greener practices is the increasing demand from businesses and customers for sustainable goods and production methods. However switching to more environmentally friendly steel production techniques could need significant financial outlays as well as operational adjustments, which would limit market expansion.

Segment Analysis

The global flat steel market is segmented based on product, process, material, end-user and region.

Rising Demand for Hot Rolled Coil (HRC) in the Construction Industry

The Hot Rolled Coil (HRC) segment is among the growing regions in the global flat steel market covering more than 1/3rd of the market. The construction industry, an essential consumer of hot rolled coil (HRC), is driving the expansion of HRC in the global flat steel market. The construction industry is growing significantly globally, especially in emerging nations.

Furthermore, one of the other important industries using HRC is the automobile sector, which is expanding steadily globally. Automakers are using lighter materials like HRC more frequently to increase fuel efficiency without sacrificing durability or safety as consumer tastes change toward more fuel-efficient cars and electrified vehicles.

Geographical Penetration

Growing Demand for Flat Steel Infrastructure Projects in Asia-Pacific

Asia-Pacific has been a dominant force in the global flat steel market. The growing construction sector in the Asia-Pacific, which is being driven by fast urbanization, population expansion and infrastructure development, is causing a considerable increase in the flat steel market. Major consumers of flat steel products including roofing, cladding and structural components are the infrastructure projects being undertaken by China, India and Southeast Asian nations.

Furthermore, Asia-Pacific's demand for flat steel is being driven by supporting government programs and efforts that boost industrialization and economic growth. The region's governments are putting policies into place to draw in foreign capital, support innovation and improve manufacturing capacities. The is causing businesses that depend on flat steel, such as consumer products, shipbuilding and machinery manufacture, to grow.

For Instance, in 2023, JSW Steel acquired the National Steel and Agro Industries (NSAIL), a manufacturer of flat steel, through its wholly-owned subsidiary JSW Steel Coated Products. NSAIL is known for its steel production and export business. It is located in central India. NSAIL recorded a turnover of ₹815 crore for the April–March fiscal year 2021–2022. Cold rolled coils, colored coils, pre-painted profile sheets and galvanized corrugated sheets are just a few of the flat steel goods in which the company succeeds.

For Instance, in 2023, Tata Steel's Kalinganagar project expansion in Odisha, slated for completion by December 2024, involves an investment of Rs 23,500 crore. The second phase, initiated in November 2018, aims to increase production capacity from three million Tons per annum (MTPA) to eight million Tons per annum (MTPA). The expansion targets enhancing flat steel output to cater to rising demands in sectors like lifting and excavation, general engineering, oil and gas and automotive. Presently, about 80% of the project has been executed smoothly, with the remaining 20% progressing well.

COVID-19 Impact Analysis

The dynamics of supply and demand in the globally flat steel market have been profoundly affected by the COVID-19 outbreak. Widespread lockdowns and travel restrictions during the pandemic's early stages caused a precipitous drop in building projects, manufacturing and automobile production all of which are important markets for flat steel items.

Because of a sharp drop in demand, there was an oversupply, which drove prices down. Global steel producers were forced to lower demand by adjusting output levels and streamlining operations, which resulted in production cutbacks, temporary closures and worker job losses.

Moreover, the pandemic also disrupted global supply chains, causing logistical challenges and delays in raw material procurement and distribution. Transportation bottlenecks, port closures and border restrictions hindered the movement of steel and related inputs, further exacerbating supply chain disruptions.

The uncertainty surrounding the duration and severity of the pandemic also impacted investment decisions and project timelines, leading to deferred construction projects and capital expenditures. As the world gradually emerges from the pandemic, the flat steel market is expected to recover, albeit with lingering uncertainties regarding the pace of economic recovery, ongoing supply chain disruptions and shifts in consumer behavior.

Russia-Ukraine War Impact Analysis

The globally flat steel sector has been severely affected by the ongoing war between Russia and Ukraine. Since both nations are significant steel producers, any changes to their capacity to produce and export steel might have major repercussions. There is uncertainty in the area as a result of the fighting, which raises the possibility of supply disruptions and price increases.

The war has caused concerns about supply constraints, which have impacted steel pricing and availability globally. Russia is one of the biggest exporters of steel in the world and Ukraine is also a major player in the market. Manufacturers and importers throughout the world are keeping a careful eye on the situation and implementing precautions to lessen any possible effects on their supply chains.

By Product
• Hot Rolled Coil (HRC)
• Cold Rolled Coil (CRC)
• Sheets & Strips
• Plates
• Slabs
• Tinplate
• Coated Steel
• Others

By Process
• Basic Oxygen Furnace
• Electric Arc Furnace

By Material
• Carbon Steel
• Alloy Steel
• Strainless Steel
• Tool Steel

By End-User
• Chemical & petrochemical
• Building and Infrastructure
• Energy & power
• Automotive & Transportation
• Oil and Gas
• Healthcare
• Mechanical Equipment
• Consumer Goods and Appliances,
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On May 22, 2023, JSW Steel acquired the National Steel and Agro Industries (NSAIL), a manufacturer of flat steel, through its wholly-owned subsidiary JSW Steel Coated Products. NSAIL is known for its steel production and export business. It is located in central India. NSAIL recorded a turnover of ₹815 crore for the April–March fiscal year 2021–2022. Cold rolled coils, colored coils, pre-painted profile sheets and galvanized corrugated sheets are just a few of the flat steel goods in which the company succeeds.

Competitive Landscape

The major global players in the market include ArcelorMittal, NIPPON STEEL CORPORATION, Ezz Steel, Tata Steel, Voestalpine Stahl GmbH, ThyssenKrupp Steel Europe, Metals USA, POSCO, Yieh Corp., HBIS GROUP Serbia Iron & Steel llc.

Why Purchase the Report?
• To visualize the global flat steel market segmentation based on product, process, material, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Flat steel market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global flat steel market report would provide approximately 70 tables, 73 figures and 197 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies