Crude Steel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Composition (Killed Steel, Semi-Killed Steel, and Other Compositions), Manufacturing Process (Basic Oxygen Furnace and Electric Arc Furnace), End-user Industry (Building and Construction, Transportation, Tools and Machinery, Energy, Consumer Goods, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). For each segment, the market sizing and forecasts have been done on the basis of volume (million ton).

Market Snapshot

Crude Steel Market - Summary
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >4 %

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Market Overview

The crude steel market was valued at over 1,700 million ton in 2020, and the market is projected to register a CAGR of around 4% during the forecast period (2021-2026).

In the COVID-19 pandemic, the construction and transportation industry has experienced a huge decline. Currently, the outbreak of COVID-19 is likely to bring several short-term and long-term consequences in the construction industry, which is likely to affect the demand for crude steel. Whereas the shutdown of automotive manufacturing facilities had highly reduced the production of vehicles in 2020, drastically reducing the demand for crude steel. Additionally, the consumption of crude steel has declined in automotive components production and frame manufacturing.

  • Over the short term, extensive usage of steel beams and pillars in the construction sector is stimulating the demand for the crude steel market.
  • The construction and automotive sector are expected to be the dominant segments, in terms of demand, over the forecast period.
  • The top steel-producing countries are China, Japan, India, and the United States, with China holding the largest share for crude steel production in the global market.
  • The Asia-Pacific region is expected to dominate the market across the world, with the largest consumption from countries such as China and India.

Scope of the Report

The term crude steel is used to refer to the first solid steel component produced since liquid steel solidified. In other words, it contains both ingots and semis (in traditional and modern mills with continuous casting facilities). The market is segmented on the basis of composition, manufacturing process, end-user industry, and geography. By composition, the market is segmented into Killed Steel, Semi-Killed Steel, and Other Compositions. By manufacturing process, the market is segmented into Basic Oxygen Furnace and Electric Arc Furnace. By End-user Industry, the market is segmented into Building and Construction, Transportation, Tools and Machinery, Energy, Consumer Goods, and Other End-user Industries. The report also covers the market size and forecasts for the crude steel market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million ton) for all the above segments.

Composition
Killed Steel
Semi-Killed Steel
Other Compositions
Manufacturing Process
Basic Oxygen Furnace (BOF)
Electric Arc Furnace (EAF)
End-user Industry
Building and Construction
Transportation
Tools and Machinery
Energy
Consumer Goods
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand from the Building and Construction Industry

  • Steel, along with its alloys, is one of the most common metals used across the world in the construction sector, accounting for more than 40% of world steel demand.
  • Steel is used in the buildings and construction industry, owing to its superior properties, such as durability and ductility, thus making the buildings earthquake-resistant.
  • The increasing rate of high-speed trains in countries like China, Japan, and India has led to the construction of special railroads, which has led to increasing consumption of carbon steel, enhancing the crude steel demand over the forecast period.
  • The global spending on the construction sector is expected to reach USD 14 trillion by 2025, which is further likely to enhance the demand for crude steel. The Asia-Pacific region is expected to dominate the construction market with a CAGR of over 8% by 2023, thereby stimulating the demand for crude steel in the region.
  • According to the International Monetary Fund (IMF), the construction industry witnessed a decline of 4.9% in 2020 in the developed economies such as The United States, Germany, France, Italy, the United Kingdom, Canada, and others, and these developed economies are expected to register a collective growth of around 4.3% in 2021. At the same time, the construction industry in developing economies such as China, India, Russia, Brazil, and others registered a collective decline of 2.4% in 2020, and the industry is expected to grow by 6.3% collectively in 2021.
  • The slowdown in the construction industry had a key role in making the demand growth harder to achieve for crude steel in 2020.
  • Due to this reason, the impact can be seen negatively for the short term, but will reduce and result in significant growth in the midterm period.
  • Owing to the aforementioned factors, the crude steel market is projected to grow at a moderate rate during the forecast period.
Crude Steel Market - Segmentation

The Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region has experienced favorable growth in the crude steel industry in countries like India, China, and South Korea, holding almost half of the consumption share. Japan crude steel market growth is driven by civil engineering activities such as the building of schools, residential and commercial constructions, railroads, etc.
  • The demand for steel in countries like India and China is around 50% more than in countries like Germany and the United Kingdom. The construction sector in India is expected to witness a strong CAGR of over 5% due to FDI (Foreign Directed Investment). It is projected that by 2021, India and China will contribute to around 40% of the global construction industry.
  • The automotive industry is growing in ASEAN countries like Malaysia, Thailand, Indonesia, and Vietnam, which have propelled the demand for crude steel. Advanced High Strength Steel (AHSS) is now being used in nearly every new vehicle as it enables flexible and creative designs with properties, such as ultra-high strength and better bending capacity. AHSS makes up around 60% of the new vehicle body structures.
  • The aerospace materials market has diversified, which has increased the demand for steel alloys in the manufacturing of aircrafts both for commercial use and for defense as military aircraft. Governments of India and China have emphasized increasing the budget on the defense of their countries and thus have enhanced the usage of steel products which has fueled the demand for the crude steel market.
  • Major companies in the Asia-Pacific region include Arcelor Mittal SA, China Baowu Steel Group Corp., and Tata Steel.
  • In addition, auto sales drive crude steel's demand. However, due to the COVID-19 pandemic, the demand in 2020 was not up to its mark. The impact is seen from both sides, i.e., production and consumption. The sudden outbreak of COVID-19 and shutdown of automotive manufacturing in the region reduced the demand for crude steel, constraining the market growth.
  • Owing to the aforementioned factors, the crude steel market is projected to grow at a significant rate during the forecast period.
Crude Steel Market - Regional Trends

Competitive Landscape

The crude steel market is highly fragmented with the top five players accounting for a minimal share of the market. Major companies in the market include ArcelorMittal, China Baowu Steel Group Corp., HBIS Group, POSCO, and NIPPON STEEL CORPORATION.

Recent Developments

  • In September 2020, the state-owned steel major, Steel Authority of India (SAIL), announced that it nearly doubled its capacity in five of its plants. The modernization drive undertaken by the government is a key step toward the target of 300 million ton per annum of crude steel productions by 2030.
  • In July 2020, JSW Steel proclaimed its plans to expand the capacity to produce around 27 million ton of crude steel by 2022 from about 18 million ton in 2020.
  • In July 2019, Indian private-sector firm Tata Steel announced its plan to expand its crude steel capacity to 30 million ton/year by 2025, from around 20 million ton/year in 2019.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand from the Building and Construction Industry

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Slowdown in Global Automotive Production

      2. 4.2.2 Unfavorable Conditions Arising Due to the COVID-19 Outbreak

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Composition

      1. 5.1.1 Killed Steel

      2. 5.1.2 Semi-Killed Steel

      3. 5.1.3 Other Compositions

    2. 5.2 Manufacturing Process

      1. 5.2.1 Basic Oxygen Furnace (BOF)

      2. 5.2.2 Electric Arc Furnace (EAF)

    3. 5.3 End-user Industry

      1. 5.3.1 Building and Construction

      2. 5.3.2 Transportation

      3. 5.3.3 Tools and Machinery

      4. 5.3.4 Energy

      5. 5.3.5 Consumer Goods

      6. 5.3.6 Other End-user Industries

    4. 5.4 Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 India

        3. 5.4.1.3 Japan

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 ASEAN Countries

        6. 5.4.1.6 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

        3. 5.4.2.3 Mexico

      3. 5.4.3 Europe

        1. 5.4.3.1 Germany

        2. 5.4.3.2 United Kingdom

        3. 5.4.3.3 Italy

        4. 5.4.3.4 France

        5. 5.4.3.5 Rest of Europe

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Arcelor Mittal

      2. 6.4.2 China Ansteel Group Corporation Limited

      3. 6.4.3 China BaoWu Steel Group Corporation Limited

      4. 6.4.4 HBIS Group

      5. 6.4.5 HYUNDAI STEEL

      6. 6.4.6 JFE Steel Corporation

      7. 6.4.7 Jianlong Group

      8. 6.4.8 JSW

      9. 6.4.9 Maanshan Iron & Steel Company Limited

      10. 6.4.10 NIPPON STEEL CORPORATION

      11. 6.4.11 NLMK (Novelipetsk Steel)

      12. 6.4.12 POSCO

      13. 6.4.13 SAIL (Steel Authority Of India)

      14. 6.4.14 Severstal

      15. 6.4.15 SHAGANG GROUP Inc.

      16. 6.4.16 SMS group GmbH

      17. 6.4.17 Tata Steel

      18. 6.4.18 United States Steel

      19. 6.4.19 Techint Group

      20. 6.4.20 Valin Group

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Crude Steel Market market is studied from 2016 - 2026.

The Crude Steel Market is growing at a CAGR of >4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

POSCO, HBIS Group , NIPPON STEEL CORPORATION, ArcelorMittal, China BaoWu Steel Group Corporation Limited are the major companies operating in Crude Steel Market.

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