Crude Steel Market | Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Crude Steel Market is segmented by Composition (Killed Steel, Semi-killed Steel, and Other Compositions), Manufacturing Process (Basic Oxygen Furnace [BOF] and Electric Arc Furnace [EAF]), 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) and revenue (USD million).

Market Snapshot

crude steel market
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 1.56 %

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Market Overview

The crude steel market was valued at over USD 1,340,036.18 million in 2021, and it is projected to register a CAGR of 1.56% in terms of revenue during the forecast period (2022-2027).

In 2021, the demand for crude steel increased due to an increase in demand in various industries such as construction, tools and machinery, energy, transportation, and others. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, around 80.15 million vehicles were produced across the world, witnessing a growth rate of 3% compared to ~77.71 million vehicles in 2020, thereby enhancing the consumption of crude steel in the manufacturing of different automotive parts.

  • Over the short term, increasing demand from the building and construction industry and recovering automotive production are likely to drive the market's growth.
  • On the flipside, depleting natural resources and the availability of substitutes are likely to hinder the growth of the studied market.
  • The growing trend of a circular economy is likely to act as an opportunity for the studied 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

Crude steel term 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 (BOF) and electric arc furnace (EAF). 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 15 countries across the major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million ton) and revenue (USD million) 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
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. Buildings from houses to car parks to schools and skyscrapers all rely on steel for their strength.
  • Steel is also used on roofs and as cladding for exterior walls. Products, such as roofing, purlins, internal walls, ceilings, cladding, and insulating panels for exterior walls, are made up of steel.
  • Steel is also found in many non-structural applications in buildings, such as heating and cooling equipment and interior ducting.
  • Internal fixtures and fittings, such as rails, shelving, and stairs, are also made of steel, and it provides a strong and stiff frame to the building.
  • Steel in the form of Rebar is used to provide support and resistance to design loads. It also plays a vital role in reducing the chances of cracking and risks of temperature-induced stresses. This may help the structure/building to remain firm and also increase its overall lifespan.
  • According to the United Nations (UN), around 50% of the global population resides in urban cities, which is projected to touch 60% by 2030. The pace of economic and demographic growth must be in harmony with the demand for commercial, residential, and institutional construction activities. By 2030, around 40% of the global population is likely to need housing at the rate of over 96,150 houses per day. Hence, with the growth of the residential sector, the use of steel is likely to increase.
  • The construction industry in Asia-Pacific is expected to become the largest and fastest-growing industry across the world, with approximately a 45% share of the global construction spending coming from the region.
  • According to China’s Five-Year Plan unveiled in January 2022, the construction industry in the country is estimated to register a growth rate of 6% in 2022. China is planning to increase the construction of prefabricated buildings to reduce pollution and waste from construction sites. The prefabricated parts, which are either partially or wholly manufactured and then transported to the construction sites for assembly, may account for over 30% of the new construction in the country.
  • According to the Federal National Mortgage Association (Fannie Mae), in the United States, residential house construction, including privately‐owned housing units authorized by building permits in January, was at a seasonally adjusted annual rate of 1,899,000. This is 0.7% above the revised December rate of 1,885,000 and 0.8% above the January 2021 rate of 1,883,000.
  • Moreover, privately‐owned housing starts in January were at a seasonally adjusted annual rate of 1,638,000. This is 4.1% below the revised December estimate of 1,708,000 but is 0.8% above the January 2021 rate of 1,625,000. The January rate for units in buildings with five units or more was 510,000.
  • According to the American Institute of Architects, the overall non-residential building construction in the United States is expected to grow to 3.1% in 2022. The construction of hotels is expected to rise by 8.8% in 2022 and of office spaces by 0.1%. The subsequent increase is expected to enhance the growth of the steel market during the forecast period.
  • Therefore, such industry trends are expected to simultaneously drive the demand for steel in the building and construction sector.
 steel market share

The Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region has experienced favorable growth in the crude steel industry, with countries like China and India holding significant consumption shares.
  • China is the largest producer of crude steel globally. According to the World Steel Association, in 2021, China accounted for more than 50% of the global production. In 2021, the country's annual production capacity of crude steel stood at 1,032.8 million ton, declining by 3% compared to 1064.7 million ton produced in 2020. The strong growth of steel production in the country was due to the growing demand from various end-user industries.
  • Furthermore, in the first quarter of 2022, crude steel production declined by 10.5% to 243.4 million ton, whereas 88.3 million ton were produced in March alone.
  • The expansion of the automotive segment in China is anticipated to benefit the demand for crude steel. According to the International Organization of Motor Vehicle Manufacturers (OICA), China is the largest producer of automobiles, accounting for about 32.5% of the global volume. The country alone produced 2,60,82,220-unit vehicles in 2021, registering an increase of 3% compared to 25,225,242 units in 2020.
  • Moreover, the Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, valued at approximately USD 1.2 trillion, further expected to raise the market demand for crude steel.
  • India is the second-largest producer of steel globally, with 118.1 million ton of crude steel in 2021, registering an increase of 17.8% compared to 100.3 million ton produced in 2020. The favorable factors account for the easy availability of low-cost manpower and abundant iron ore reserves.
  • Furthermore, according to the World Steel Association, in the first quarter of 2022, the production capacity of crude steel stood at 31.9 million ton, registering an increase of 5.9% compared to the same period last year.
  • As per the reports by the Society of Indian Automobile Manufacturers, SIAM, the country produced 4,399,112 units of passenger cars and light vehicles in 2021. Moreover, the government's reforms, such as "Aatma Nirbhar Bharat" and "Make in India" programs, are expected to boost the automotive industry.
  • According to IATA (International Air Transport Association) report, India is poised to become the third-largest aviation market globally by the end of the forecast period. The country is projected to have a demand for 2,100 aircraft over the next two decades, accounting for over USD 290 billion in sales. ​Due to these factors, the demand for crude steel from the aerospace sector is expected to rise in the future.
  • Therefore, all the above-0mentioned factors are likely to significantly impact the demand in the market studied in the years to come.
steel processing market size

Competitive Landscape

The market studied stands to be fragmented in nature, with moderately high competition among the market players to increase their shares. Some of the key companies in the market include China BaoWu Steel Group Corporation Limited, ArcelorMittal, Nippon Steel Corporation, HBIS GROUP, and Shagang Group.

Recent Developments

  • In April 2022, China Baowu Steel Group announced the acquisition of Xinyu Iron & Steel Co. (XISCO), a sate owned steel manufacturer in Jiangxi province, China, with the transfer of 51% of the shares. This acquisition will enhance Baowu’s overall production capacity of steel as XISCO is the largest steel manufacturer in Jiangxi Province, with a total output of around 9.89 million ton in 2020.
  • In January 2022, Tata Steel Ltd’s crude steel production increased by 16% Y-o-Y to 14.16 million ton at the end of the third quarter on December 31, 2021. Its total deliveries increased by 4% at 13 MT Y-o-Y on the back of continued economic recovery.
  • In December 2021, JFE Steel Corporation and Nucor, a US-based enterprise, will become joint owners of California Steel Industries (CSI), a US-based steel maker. The agreement will make CSI a joint venture company with 51% ownership by Nucor and 49% ownership by JFE Steel. Nucor's crude steel production capacity is around 22.7 million ton annually.

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 Recovering Automotive Production

    2. 4.2 Restraints

      1. 4.2.1 Depleting Natural Resources and Availability of Substitutes

    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 Buyers

      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 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 ArcelorMittal

      2. 6.4.2 China Ansteel Group Corporation Limited

      3. 6.4.3 China BaoWu Steel Group Corporation Limited

      4. 6.4.4 China Steel Corporation (CSC)

      5. 6.4.5 Fangda Special Steel Technology Co. Ltd

      6. 6.4.6 HBIS GROUP

      7. 6.4.7 Hyundai Steel

      8. 6.4.8 JFE Steel Corporation

      9. 6.4.9 JSW

      10. 6.4.10 NIPPON STEEL CORPORATION

      11. 6.4.11 NLMK (Novelipetsk Steel)

      12. 6.4.12 Nucor Corporation

      13. 6.4.13 POSCO

      14. 6.4.14 RIZHAO STEEL HOLDING GROUP CO. LTD

      15. 6.4.15 Steel Authority of India Limited (SAIL)

      16. 6.4.16 SHAGANG GROUP Inc.

      17. 6.4.17 Tata Steel Limited

      18. 6.4.18 United States Steel Corporation

      19. 6.4.19 Techint Group

      20. 6.4.20 Hunan Valin Iron And Steel Group Co. Ltd

    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 2017 - 2027.

The Crude Steel Market is growing at a CAGR of 1.56% over the next 5 years.

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

Asia Pacific holds highest share in 2021.

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

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