Iron & Steel Market

Updated on : March 19, 2024

Iron & Steel Market

The global iron and steel market size was valued at USD 1,599.4 billion in 2022 and is projected to reach USD 1,928.6 billion by 2027, growing at 3.8% cagr from 2022 to 2027. The market is growing due to the growing global construction industry, rapid industrialization, and faster infrastructure development, especially in emerging economies.

Attractive Opportunities in Iron & Steel Market

Note:e-estimated,p-projected.

Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

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Iron & Steel Market Dynamics

Driver: Abundance of iron ore & other minerals for steel

The abundance of iron ore has a significant impact on the iron & steel industry. Iron ore is a mineral, typically found in the form of oxides and hydroxides, which is mined and used to make steel and other metal products. The abundance of iron ore has enabled the industry to meet the increasing demand for steel products and sustain global growth and prosperity. The abundance of iron ore and its availability to the industry, have enabled the global production of steel to increase. . It has also allowed the industry to produce a wide range of steel products, making steel a cost-effective and attractive choice for many projects

Restraint:  Volatile prices of raw materials

Volatility in raw material prices can be a significant restraint for the iron and steel industry. Due to the fact that the steel production process requires a large number of raw materials, fluctuations in the global demand for certain materials can lead to unforeseen changes in the cost of production, resulting in reduced profitability and potential losses for producers. The price of steel is dependent on the supply and availability of raw materials such as iron ore, coal, industrial gases, ferrous scrap, and ferroalloys for the production and processing of steel. The prices of these materials depend on their availability, trade relations, and tariffs between countries, which makes them highly volatile. An increase in the prices of raw materials impacts the production costs of long steel, thereby resulting in inflated prices of finished products.

Opportunity: Transitions towards Net-zero steel.

Steel manufacturing is a significant contributor to greenhouse gas emissions, ranking as the second-highest emitting industry after cement production. At present, consumers, manufacturers, retailers, advocacy groups, and governments across the globe are encouraging to reduce greenhouse gas emissions. Net-zero steel is one of the biggest opportunities for the iron & steel industry today as it involves creating steel production processes that reduce the amount of carbon released into the atmosphere to net zero. It is an ambitious goal, but one that can be achieved with the right technology and investment

Challenge:  Environmental Challenge

The iron & steel industry is one of the largest emitters of carbon dioxide and other pollutants, making it a major contributor to global climate change and environmental degradation. The industry is responsible for increasing levels of air, water, and soil pollution, primarily due to the burning of fossil fuels and the production of hazardous by-products. To mitigate its environmental impact, the iron & steel industry must adopt green technologies and more sustainable methods of production and waste disposal. The most crucial factor to be considered is the environmental challenge.

Steel segment amongst other types projected to grow at a highest CAGR from 2022 to 2027, in terms of value

Steel is a well-known metal alloy composed of iron & carbon. It is widely used in construction, automotive, and engineering applications due to its excellent strength-to-weight ratio, durability, and malleability. Steel is also known for its high tensile strength and resistance to corrosion, making it an ideal choice for many industrial applications. Steel is composed of iron & carbon in a specific ratio and can be alloyed with other elements, like molybdenum, vanadium, and chromium, to improve its properties. Steel is not a single product. There are more than 3,500 different grades of steel with many different physical, chemical, and environmental properties.

Electric Arc Furnace(EAF)  production technology projected to grow at highest cagr from 2022 to 2027, in terms of value

The Electric Arc Furnace (EAF) is another popular steelmaking process today. Steel scrap is the most common feedstock for EAFs, but they can also smelt solidified iron or sponge iron. The heat source for the refining process is an electric arc. The EAF method produces molten steel through its batch melting process. The process includes the important phases of charging, melting, refining, de-slagging, tapping, and furnace turn-around. This process is cheaper compared to the basic oxygen furnace steelmaking process. As EAF steelmaking technology has improved in recent years, EAF steelmakers now have access to high-quality steels. Despite the difference in capital costs, EAF steelmaking is expected to grow proportionally faster than BOF steelmaking in the coming years.

Asia Pacific is accounted for the largest share in the iron & steel market during the forecast period.

The Asia Pacific region has emerged as the largest market for iron & steel in terms of value, and is expected to witness significant growth during the forecast period. This growth can be attributed to the increasing building & construction activities, especially in China, Japan, and India, coupled with increasing investments from domestic and foreign investors in the public and private sectors. China is projected to lead the Asia Pacific market during the forecast period, owing to the high population of the country, the increase in new construction and infrastructure development projects, along with the availability of cheap labor.

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Iron & Steel Market Players

The key players in the iron & steel market include China Baowu Steel Group Corporation (China), ArcelorMittal (Luxembourg), Nippon Steel Corporation (Japan), POSCO (South Korea), and Nucor Corporation (US), HBIS Group (China), Ansteel Group Corporation(China), Tata Steel Limited(India), JSW Steel(India) and SAIL(India). The iron & steel industry report analyzes the key growth strategies, such as new product launches, investments & expansions, joint ventures, agreements, partnerships, and mergers & acquisitions adopted by the leading market players between 2018 and 2022.

Read More: Iron & Steel Companies

Iron & Steel Market Report Scope

This research report categorizes the iron & steel market based on type, production technology, end-use industry and region.

Iron & Steel Market By Type:

• Iron
• Steel

Iron & Steel Market By Production Technology:

• Basic Oxygen Furnace
• Electric Arc Furnace
• Open Hearth
• Others

Iron & Steel Market By End-use Industry:

• Building & Construction
• Automotive & Transportation
• Heavy Industry
• Consumer Goods
• Others

Iron & Steel Market By Region:

• North America
• Aisa Pacific
• Europe
• Middle East & Africa
• South America

The iron & steel market has been further analyzed based on key countries in each of these regions.

Recent Developments

• In December 2022, The China Baowu Steel Group Corporation has signed the Simandou Infrastructure Project Term Sheet with SMB-Winning Consortium (Guniea) and Guinean Government. The main aim of this joint investment is the development of infrastructure, such as railways and ports, which further leads to the overall development of the Simandou project.
• In August 2022, The Tata Steel Limited signed an MoU with the Government of Punjab for setting up a 0.75 MnTPA long products steel plant with a scrap-based electric arc furnace (EAF).
• In March 2022, China Baowu Steel Group Corporation and Shell signed two cooperative agreements, including an enterprise framework cooperation agreement (EFA) on green steel products supply and a master agreement on emission trading, symbolizing that the cooperation between both parties of low-carbon development advances to a new level.
• In February 2022, The JSW Steel Limited acquired Mivaan Steels Limited, a manufacturing company of steel products. With the help of this acquisition, the company will produce and market ferro alloys, billets, pellets, sponge iron, structural steels, and thermo mechanically treated (TMT) bars.

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