Iron is commonly found in the form of oxide in its ores and most of it is involved in the production of iron. Globally, the development of efficient and advanced technologies, rise in demand from emerging construction industries, thriving automotive industry, and profitable steel and structures are the main drivers of global steel market growth. In addition, the increase in acceptance of steel for applications in new industrial sectors, as well as emerging economies such as China, India, and others, will create new opportunities for the global steel market. However, prices, obtainability of raw materials, availability of replacement chemicals, depletion of iron ore mines, and declining ore quality are significant barriers to the global steel market.
Market Scope and Structure Analysis
The iron and steel market is expected to see rapid growth due to hefty demand from the transportation and construction sectors in the upcoming period. Rapid industrial development and urban sprawl, especially in developing regions such as Central & South America and Asia-Pacific are anticipated to drive the market. Steel production is a major metal application. It is a mixture of iron and carbon, and other additives such as manganese, boron, titanium, nickel, molybdenum, chromium, and vanadium. These add-ons offer a variety of metal features to make it proper for many applications. Major Ores include limonite, hematite, goethite, magnetite, and siderite. Among these, different hematite, ores and magnetite are rich in iron and contain more than 60% iron. Depending on the carbon content, there is pig iron, synthetic steel, and synthetic steel. Pig metal has topped the market in the past and is projected to continue to dominate the market during the forecast period.
COVID-19 Impact Analysis
- COVID-19 has closed the manufacturing of many products in the steel market due to the lockdown. This has hampered the market growth from the last few months and is likely to continue during 2021.
- COVID-19 has so far impacted the sales of iron and steel products in the first 4 months of 2021 and is expected to create a negative effect on the growth of the market all over the year.
- By 2020, COVID-19 impact may lead to a decline in the shipping of iron and steel products as well as revenue received from them. Due to this, the market growth declined in the first half of 2020.
- Iron and steel companies rely heavily on the supply of raw materials, components, and materials from different countries around the world. With so many governments limiting exports, manufacturers had to stop production due to a shortage of raw materials.
- The pandemic has had a devastating effect on iron and steel product prices. The key playing countries of the market like India, US, China, and Japan have been hit hard, harming steel and iron production and impacted different areas like agricultural, industrial, printing presses, conveyors, automobiles, motorcycles, telephone, and bicycles, which is expected to continue for a brief period due to land recession.
Top Impacting Factors
The increase in demand from the construction industries due to the rapid infrastructure efforts made by governments especially for the developing area is expected to contribute to the growth of the industry. The construction industry is the largest consumer in the steel market followed by transportation. Developing economies such as China, Brazil, India, and Russia have seen rapid demand for automobiles due to factors such as rise in revenue, urbanization, and population growth. This trend is projected to continue in the upcoming period, and thus, is anticipated to boost the market growth. The economic situation in North America has seen a resurgence in recent years following the global economic downturn. The European economy is expected to witness a similar recovery due to the strong measures taken by the governments involved. Such efforts are expected to coincide with regional markets.
At the same time, environmental concerns have led to few regulations for mining. Emerging economies are the emerging consumers of steel. They face government regulations such as authorizing steel companies to reduce production to reduce mining. This type of regulatory framework is expected to disrupt the regional and global steel markets.
Market Trends
- Arcelor Mittal and SEKISUI CHEMICAL announced carbon recycling partnership in July 2021. In the project, CO2, which would otherwise have been emitted, will be separated and recovered from carbon-rich waste gas from the steelmaking process. An innovative chemical process, developed by SEKISUI CHEMICAL in Japan, then converts the waste CO2 into carbon monoxide rich Synthesis Gas (carbon monoxide and hydrogen). The Synthesis Gas is then returned to the steelmaking process as an alternative reduction agent for iron ore, thereby lowering the volume of fossil resources required in the steelmaking process.
- A rolling mill for refurbishes steel plate, set up by Kobe steels at Kakogawa Works, in June 2021. Kakogawa Works produces steel products for use in automobiles, appliances, ships, buildings, bridge cables and other applications. Kobe Steel’s steel products include a long-lasting steel plate for bridges and Eco-View. Along with this, our steel plate business has been providing different solutions to customers in partnership with the Company welding team and technology development team.
Key Benefits of the Report
- This study presents the analytical depiction of the iron and steel market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the iron and steel market share.
- The current market is quantitatively analyzed to highlight the iron and steel market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed iron and steel market analysis based on competitive intensity and how the competition will take shape in coming years.
Questions answered in the Iron and Steel Report
- Who are the leading global players in the "iron and steel" market?
- What are the current trends and predicted trends?
- What is “iron and steel market"?
- What is “iron and steel" market prediction in the future?
- What are the challenges faced in the "iron and steel" market?
- What are the driving factors and opportunities in the market?
- What are the key benefits of the “iron and steel" market report?
Key Market Segments
- By Type
- By Application
- Physical Production
- Chemical Production
- Mechanical Production
- By Region
- North America
- Europe
- Germany
- UK
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Insteel Industries Inc.
- Steel Authority of India Ltd. POSCO
- Tata Steel Ltd.
- Rio Tinto
- Tree Island Industries Ltd.
- Leggett & Platt Incorporated.
- Kobe Steel Ltd.
- BHP
- Vale
- N.V. Bekaert SA
- ArcelorMittal S.A.
- Bridon International Ltd.