U.S. Carbon Steel Market Size, Share & COVID-19 Impact Analysis, By Type (Low Carbon Steel, Medium Carbon Steel, High Carbon Steel, and Ultra-High Carbon Steel), and By Application (Building & Construction, Automotive & Transportation, Industrial Equipment, and Others), Country Forecast, 2023-2030

The U.S. carbon steel market size was USD 105.80 billion in 2022 and is projected to grow at a CAGR of 4.0% during the forecast period.

In the U.S., several vital industries continue to fuel strong demand for carbon steel. This demand is mainly driven by the construction industry, with product use in commercial buildings, infrastructure development, and residential projects. Furthermore, the automotive industry relies on carbon steel for manufacturing vehicles, chassis, and structural elements. In the energy industry, especially in oil and gas, the product is used for drilling equipment, storage tanks, and pipelines. Overall, the numerous product uses result in a consistent and robust demand in the U.S. market.

The COVID-19 impact was stringent on the market owing to the significant decline in the automotive industry. However, at present the market has recovered as the automobile producers have stabilized their production and sales in the U.S. market.

U.S. Carbon Steel Market Trends

Growing Use of Renewable Energy is a Latest Market Trend in the U.S.

The renewable energy sector in the U.S. market presents significant opportunities for the steel industry, with applications ranging from the manufacturing of solar panel structures, wind turbine towers, and energy storage systems, all made from carbon steel. The need for this product in the renewable energy sector is anticipated to rise as clean and sustainable energy sources gain greater emphasis. Manufacturers can meet the rising demands of the renewable energy sector and support the nation’s transition to sustainable energy by providing sturdy, lightweight, and high-quality products. Grades incorporating recycled material, renewable energy sources in production or lower carbon footprints are gaining popularity. This trend is further expected to increase the product demand.

U.S. Carbon Steel Market Growth Factors

Rising Construction Industry to Foster Product Demand in the U.S.

Carbon steel is extensively employed in construction projects for commercial and residential structures as well as for remodeling work. The product demand is continuously increased by the construction industry’s strong growth, fueled by factors such as population expansion, urbanization, and government expenditures on infrastructure development. The expansion of the market is further aided by the repair and modernization of existing infrastructures. The product stands out as an ideal and reliable material in building construction due to its strength, adaptability, and affordability.  As the construction industry continues to expand and evolve, the product demand is expected to remain high in the U.S.

RESTRAINING FACTORS

Availability of Alternative Material to Impede Market Growth

Alternative materials such as composites, aluminum, and advanced plastics, which offer higher corrosion resistance and lightweight, are gaining momentum as a result of technological breakthrough and escalating environmental concerns. The market is facing a challenge from these materials as they are employed more frequently in industries such as aerospace, construction, and automobile industry. Hence, the availability of substitutes is expected to hinder the U.S. market growth.

U.S. Carbon Steel Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into low carbon steel, medium carbon steel, high carbon steel, and ultra - high carbon steel.

The low carbon steel segment accounted for the largest U.S. carbon steel market share in 2022 and is likely to maintain its dominance during the forecast period. This type of steel is used in a variety of applications, including structural steel, wire, and sheet metals, with its demand fueled by the growth of the end-user industry.

Medium carbon steel is used in applications that require strength, such as gears, shafts, and springs. The demand for this type is mainly driven by the machine and equipment industry. On the other hand, high and ultra-high type caters to applications requiring high strength and hardness. Industry such as aerospace & defense, metalworking, and tooling industry are bolstering the product demand.

By Application Analysis

Based on application, the market is segmented into building & construction, automotive & transportation, industrial equipment, and others.

The building & construction segment holds the key share of the U.S. market and is likely to expand rapidly during the forecast period. The demand for product in the U.S. is mainly driven by the building & construction industry. Rising infrastructure development, remodeling and restoration, and commercial construction growth are prompting the demand for the product.

The surge in demand for electric vehicles in the region, which employs steel in engine parts, battery enclosure, and door panels, is expected to drive the product demand. The region’s emphasis on the renewable energy sector is expected to create several opportunities for the U.S. carbon steel market.

List of Key Companies in U.S. Carbon Steel Market

The U.S. market is highly consolidated with key players including Cleveland-Cliffs Inc., JFE Shoji Steel America, Inc., Nucor Corporation, United States Steel Corporation, and SSAB Americas, among others. Industry players primarily compete based on the price and application characteristics of the product. They are investing in new technology and increasing the efficiency of the process in order to align with adopted sustainability goals.

Several players are investing in research and development to stay ahead in the market to cater to demand for lightweight and high-strength steel. This investment aligns with the prevailing light weighting trends in industries such as automotive and aerospace.

LIST OF KEY COMPANIES PROFILED:

• Cleveland-Cliffs Inc. (U.S.)


• JFE Shoji Steel America, Inc. (U.S.)


• Nucor Corporation (U.S.)


• SSAB Americas (U.S.)


• United States Steel Corporation (U.S.)


• Steel Dynamics. (U.S.)


• Commercial Metals Company (U.S.)


• Eagle National Steel (U.S.)


• ThyssenKrupp AG (Germany)


• NLMK USA (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023: Cleveland-Cliffs Inc. made a breakthrough by hydrogen (H2) injection trial at its Middletown Works blast furnace. The breakthrough represents a substantial step toward the decarbonization of blast furnace.


• August 2022: JFE Shoji Corporation entered into an agreement to acquire all the shares of California Expanded Metal Products Co. (CEMCO) from the Poliquin family ownership group. CEMCO produces building products and more than 300 million lineal feet of high-quality steel framing annually.


• October 2022: Steel Dynamics completed the acquisition of ACERO, S.A. de C.V. – a Mexican metals recycling company, strengthening its nonferrous and ferrous raw material procurement strategy in the region.


• December 2020: Cleveland-Cliffs Inc. acquired all the operations of ArcelorMittal USA and ArcelorMittal USA LLC, becoming the largest flat-rolled steel producer in the region.

REPORT COVERAGE

The study report thoroughly examines key factors such as major firms, goods, and services. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities and historical data and revenue growth estimates at the country levels.

Report Scope & Segmentation