Heat-treated Steel Plates Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Heat-treated Steel Plates Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global heat-treated steel plates market is projected to register a CAGR of over 3% during the forecast period (2021-2026).

The market was significantly impacted by COVID-19 in 2020. Several countries were forced to go in lockdown owing to the pandemic scenario, which led to a shutdown of manufacturing facilities of almost every industry worldwide for a specified time. Disruption of industrial production impacted metals production, especially steel production. Furthermore, the building and construction industry experienced a temporary slowdown during the period. The majority of construction projects were paused for a specified time across various countries across the world. Moreover, loss of investment plans and termination of planned projects continued even after the lockdown protocols were relaxed. Automotive was another industry that was severely impacted by the pandemic. However, by the end of 2020, most industries started to gain momentum, with recovery expected through the years to come.

Key Highlights

• Over the long term, increasing applications in the production of heavy machinery and growing demand from the construction industry in developing countries are driving the market growth.
• Fluctuating raw material prices is expected to hinder the market growth for heat-treated steel plates.
• Increasing application in the energy and power sector is expected to act as an opportunity in the future.
• Due to rapid industrialization and the growing construction sector, the Asia-Pacific region is expected to dominate the heat-treated steel plates market, globally.

Key Market TrendsGrowing Applications for Machinery Production

• Heat-treated steel plates are used to improve the mechanical and chemical properties of steel without changing any original characteristics. Hence, they are being used by various end-user industries.
• The demand from the automobile and industrial machinery has been growing because of heat-treated steel plate properties. Among all the types of steel, carbon steel has a major share and is used in different applications.
• In August 2020, US Steel announced its decision to invest USD 750 million to modernize and enhance its Gary Works plant in Indiana, the United States.
• In November 2020, Big River Steel announced its decision to expand its Arkansas-based scrap recycling and steel production facility, which may double the hot-rolled steel production capacity of the company to 3.3 million metric tons, annually. This may further facilitate the company’s ability to produce higher grades of the electrical steel used in energy efficiency products and hybrid and electric vehicles.
• Heat-treated steel plates are employed to produce machinery equipment, such as gear teeth profile, crane cable drum, gear wheel, brake drum, machines worm steel, flywheel, railway wheels, crankshaft, hydraulic clutches, electric transmission lines, boiler mountings, etc.
• However, the impact of COVID-19 is expected to decrease the demand and usage of heat-treated steel plates from several end-user industries globally in the short run.
• Overall, increasing applications for industrial machinery and a decrease in demand from the automobiles sector in developing regions are expected to impact the demand for heat-treated steel plates through the years to come.

Asia-Pacific to Dominate the Market

• Asia-Pacific is expected to dominate the global market owing to the highly developed manufacturing sector in China, Japan, and India, coupled with the continuous investments done in the region to advance the construction, energy, and power sector through the years.
• The demand from the energy and power sector has been growing significantly in recent years. Heat-treated steel plates are being used for boilers, storage tanks, pressure vessels, and other structural parts most commonly used in hydropower stations, nuclear, and other energy generation plants.
• According to the International Energy Agency (IEA), Asia-Pacific is the largest energy-consuming region in recent years. Although the power and energy market has a positive outlook globally, the COVID-19 outbreak is expected to have a negative impact in the future.
• Moreover, a majority of the global power generation plants are located in China. Some of the upcoming power reactors in China under construction include Fuqing 6, Hongyanhe 5, Shidaowan, Tianwan 6, etc.
• The China Electricity Council announced that the investment of major power companies increased 0.3% Y-o-Y in 2021, despite suffering the largest demand reduction in 2020. The public utility State Grid of China (which accounts for around a third of the electricity investment) announced to invest a total of 450 billion Yuan in 2020, with ultra-high voltage (UHV) projects accounting for 40% of total investment.
• Moreover, the construction industry in Asia-Pacific has constantly been growing. India, Singapore, and China have witnessed decent growth in recent years.
• Bridges, building structural components, dams, and engineering structures are the reason for increasing the demand for heat-treated steel plates from the construction industry.
• Additionally, heat-treated steel plates are being used in shipbuilding and off-shore structures, and defense areas. The rise in these activities in Singapore and China in the past two years has increased the demand for heat-treated steel plates.
• With the rapid growth of industrialization, increasing usage of machinery equipment, and construction industries in developing countries, the rising power generation plants are expected to drive the market for heat-treated steel plates in Asia-Pacific through the years to come.

Competitive Landscape

The global heat-treated steel plates market is partly fragmented in nature, with many players competing in the market. Some of the major companies are POSCO, NIPPON STEEL CORPORATION, Tata Steel, JFE Steel Corporation, and ThyssenKrupp Steel Europe, among others.

Additional Benefits:

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

Companies Mentioned
 
ArcelorMittal
Baosteel Group
HYUNDAI STEEL
JFE Steel Corporation
NIPPON STEEL CORPORATION
NUCOR
Outokumpu
POSCO
Tata Steel
ThyssenKrupp Steel Europe

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.