Flat Steel Market Size, Share & COVID-19 Impact Analysis, By Type (HRC, CRC, Sheets, and Others), By Application (Construction, Automotive & Transportation, Mechanical Equipment, and Others), and Regional Forecast, 2022-2029

The global flat steel market size was valued at USD 504.46 billion in 2021. The market is projected to grow from USD 526.89 billion in 2022 to USD 783.71 billion by 2029, exhibiting a CAGR of 5.8% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with flat steel experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -1.6% in 2020 as compared to 2019.

Flat steel is a type of steel mainly made from coal, scrap steel, and iron ore. The product is known to increase the reliability, toughness, consistency, and quality of end products and reduce waste. It enhances the end-user products' performance and helps improve the trouble-free processing, product shelf life, and yield. These factors increase its demand in the construction and automotive industries. Furthermore, the growing adoption of steel in various applications for cost reduction and providing greater quality products will boost the product adoption. Moreover, rapid infrastructure development in developing countries, such as China and India, and growing technological advancement to make steel more reliable and lightweight will flourish the market growth during the forecast timeframe.        

COVID-19 IMPACT

Supply Chain Disruptions in the Steel Industry Declined Flat Steel Consumption

The disruption in the steel industry due to government restrictions implemented during the COVID-19 pandemic significantly influenced the market. This pandemic has caused containment measures, disturbances in the supply chain, and suspension in consumption activities, which resulted in machinery closures, scarcity of raw materials, factory shutdowns, and severe shortage of trained and skilled labor, due to which steel production remained closed. Moreover, global lockdown resulted in the stoppage of mining activities and has further affected the availability of iron ore and scrap iron. This factor affected the manufacturing companies and caused a reduction in raw material availability, decreased distribution activities, and transportation of material.

Furthermore, automotive manufacturers, such as Maruti Suzuki, Tata Industries, and Tesla, faced a shutdown of operations during COVID-19 or reduced production capabilities. This closure of operations created an impact on product consumption. However, steel consumption is projected to recover more quickly in emerging nations than in developed ones, returning to pre-pandemic levels in 2021. The demand for steel from emerging countries is owed to the recovery of the mechanical industry from the COVID-19 impact. As a result, the market will likely stabilize over the next couple of years.

LATEST TRENDS

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Rapid Inclusion of Steel in the Automotive Industry Attributable to its Characteristics to Propel Market Progress

The automotive industry is reshaping due to various factors that aim to improve profit margins, where steel is substituted with aluminum and composite materials. However, the significant parts of vehicle bodies, including vehicle frames and guards are manufactured from steel. This factor makes the automotive industry one of the primary consumers of flat steel products, accounting for up to 10% of all steel produced worldwide. Further, the consumption of cold rolled steel is high in automotive for exterior body and interior parts applications due to its high formability and dent resistance. Further, auto parts requiring good surface finishing and impact resistance are witnessing strong sales. These factors lead to higher flat steel consumption, thereby creating growth opportunities for the market. 

DRIVING FACTORS

Robust Demand for Flat Steel from the Construction Industry to Drive Market Growth

Growing population, urbanization, and the increasing pace of nuclearization of the population are the key drivers of the construction industry growth. This industry uses flat steel in structural support and construction frame for roofing, staircases, sheds, and welded structure applications. The increasing trend of owning multiple houses, rising affluence of the middle class, and renovation or redevelopment of houses further drive the construction industry, thereby fueling the market. Moreover, construction projects, such as steel bridges, skyscrapers, and infrastructure, consume many steel plates. At the same time, demand from the infrastructure sector for roads, highways, and rail projects is expected to grow during the forecast period. Hence, rapidly growing construction projects and increasing innovation in the steel industry will flourish the flat steel market growth during the forecast period.

RESTRAINING FACTORS

Fluctuation in Steel Prices is Likely to Hamper the Market Growth 

Steel is a commodity that has witnessed fluctuation in prices daily, along with the raw materials for steel, including iron, coal, and scrap steel. These raw material prices are highly volatile due to the influence of laws of supply and demand. In addition, the production costs influence prices and storage capacity. These fluctuations in steel prices affect the cost of steel manufacturing, and flat steel prices are directly dependent on steel. Therefore, changes in steel prices affect the final product price. Furthermore, steel prices have increased rapidly over the years due to significant geopolitical events and a rise or fall in demand, thereby restraining the market growth.

SEGMENTATION

By Type Analysis

HRC Segment to Dominate the Market Due to High Demand from Equipment and Machinery Applications

Based on type, the market is segmented into Hot Rolled Coil (HRC), Cold Rolled Coil (CRC), sheets, and others.

HRC is expected to continue its dominance during the review period owing to rising demand from construction, agriculture equipment, pipe-making, and machinery applications. This product offers durability, high strength, formability, and temperature-resistant properties. Moreover, increasing its preference in the areas which do not necessitate much shape change and force along with growing technological advancement in HRC would propel the segment growth.

CRC is essentially hot-rolled steel, which has been further processed in cold reduction materials. It is predominantly used in applications where surface conditions, tolerances, straightness, and concentricity are required. The growing demand for steel sheets from the automotive industry to make the bodies of cars will propel the segment growth during the forecast timeframe.

By Application Analysis

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Construction Segment to Dominate Owing to Increasing Applications of Flat Steel

Based on application, the market is segmented into construction, automotive & transportation, mechanical equipment, and others. The construction segment held the highest flat steel market share in 2021. The product is mainly used in sheds, roofing, staircases, and welded structures in the construction industry due to its safety, optimal cost, and lightweight characteristics. Moreover, the introduction of modern techniques such as monolithic construction for faster execution of projects will further drive the product demand in the construction industry.

The rapidly growing automotive industry owing to the increasing adoption of electric vehicles in countries such as Germany, China, and the U.S. is expected to drive product consumption. The high strength and formability of HRC and CRC products will surge their demand from mechanical equipment such as agricultural and industrial tractors. Increasing the use of corrosion-resistant material from various equipment manufacturers will surge the product demand in the mechanical equipment segment.

The others segment includes domestic appliances, metal products, defense, consumer goods, electronics, and packaging. In such applications, the product consumption is high due to its ultimate tensile and shear strength. Moreover, increasing consumer disposable income and growing demand for electronics accessories coupled with the rising adoption of metals in manufacturing industries resulted in high product demand. Hence, this will further fuel the overall market growth during the review period.

REGIONAL INSIGHTS

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The market size in Asia Pacific stood at USD 255.81 billion in 2021. Increasing industrialization and rising technological advancements in steel are likely to fuel market growth in Asia Pacific. China holds a major market share due to rising steel production, increasing research & development activities, and increasing development of the construction sector are likely to fuel the product’s demand in China.

In Europe, technological advancements and rapid growth in the automotive sector is expected to attract robust demand for the product. This factor enhanced the demand for steel sheets and HRC.

In North America, the product’s greater strength and temperature-resistant characteristics is expected to boost the demand for CRC in electronic and engineering applications.  

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In Latin America, Brazil and Mexico are the leading countries. Increasing product consumption, consumer goods industries, of mechanical equipment, metal products, and will augment market progress. The growth of the construction sector in the Middle East & Africa will exhibit considerable market growth in the upcoming years due to rising expansions of industrial facilities and production capacities by several firms, thereby facilitating the growth of construction activities in the region.

KEY INDUSTRY PLAYERS

Business Expansion in Construction Industry to Retain More Customers is the Key Strategic Initiative Implemented by Companies

Key players operating in the market are ArcelorMittal, Nippon Steel Corporation, and ThyssenKrupp Steel Europe. These companies are involved in capacity improvement, product innovation, acquisition, and collaborations in the market. Nippon Steel Corporation is a steel manufacturer and uses hot and cold-rolled processes to manufacture flat steel-based products for customers. Further, the company is involved in the steel innovation, acquisitions, and research and development, to satisfy consumer demands.

LIST OF KEY COMPANIES PROFILED:

• ArcelorMittal (Luxembourg)


• NIPPON STEEL CORPORATION (Japan)


• Ezz Steel (Egypt)


• Tata Steel (India)


• HBIS Group (China)


• Voestalpine Group (Austria)


• ThyssenKrupp Steel Europe (Germany)


• Metals USA (U.S.)


• POSCO (South Korea)


• Yieh Corp. (Taiwan)

KEY INDUSTRY DEVELOPMENTS:

• October 2020: ArcelorMittal Europe announced a CO2 technology strategy to produce the first green steel solutions for customers. With this initiative, the company aims to deliver its 30% CO2 emissions target by 2030 and achieve net zero by 2050. Also, the company is implementing projects in almost all of its flat product sites to use gases from different sources for blast furnace injection to reduce CO2 emissions.


• March 2021: ArcelorMittal launched XCarb, an initiative to reduce CO2 emissions during steel manufacturing while focusing on achieving demonstrable progress toward carbon-neutral steel. In flat product operations, the company invested in a broad range of initiatives to reduce carbon emissions from the blast furnace.

REPORT COVERAGE

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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, applications, and products. Also, it provides quantitative data in terms of volume and value, market analysis, research methodology for market data, and insights into key market trends. It highlights vital industry developments and the competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation