Global Steel Processing Market: Urban Growth Pattern Presenting a Valuable Opportunity for the Market Growth

Global Steel Processing Market

Steel processing can be defined as the conversion of steel from scrap steel to steel alloys that can be used to mold new products for reuse. This conversion is done through melting the steel in furnaces. There are a number of applications of steel products and requirement of steel with the rapidly growing urban population worldwide.

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Steel processing market is growing due to increasing urban population, increasing infrastructure investment; the effects of these factors are mentioned below:

  • Increasing urban population: Globally, the volume of individuals living in rural areas has been declining in the last century with a majority of the global population shifting to urban areas in the hopes of better opportunities for their careers, enhancement of lifestyle and betterment of their future. This also translates to greater expenditure incurred on infrastructural development, construction, adoption of high-quality products. Due to the variety of features presented by steel in these applications, their uses in the production of variety of goods has expanded with a number of electronics manufacturers, vehicle manufacturers and even consumer goods manufacturers adopting high-strength processed steel in their production processes
  • Increasing infrastructure investment: Overall, the infrastructure available with different regions and industries is undergoing massive transformation because of industrialization and growth of the overall trade activities between different regions. These industries have witnessed a key trend of their infrastructural growth to improve their presence in different regions and expand their production capabilities to meet the demand for their products and services globally

Product expansions and business acquisitions conducted by different market players:

  • In October 2018, ArcelorMittal with the help of Essar Steel acquisition entered into the Indian regional market, establishing themselves as stiff competition for the private steel manufactures already present in the market. This will induce these players to focus on adopting more cost-efficient production method which is expected to improve the quality of products at a lower cost for customers
  • In November 2017, National Material of Mexico announced the expansion of their facility situated in Monterrey, Mexico; extending it by 82,000 square feet. This expansion will include the addition of steel processing capabilities for advanced high strength steels along with expansion of their railcar receiving capacity. This facility will also serve as the headquarters building for the company. This expansion will help in the creation of around fifty jobs and this expansion will help in increasing their overall business

The market is segmented on the basis of type of steel as carbon steel, alloy steel; shape of steel is categorized into flat steel, long steel, tube steel; end-user is categorized as consumer appliances; industry trends as supply chain analysis, porter’s five forces analysis.

“According to Data Bridge Market Research, global steel processing market is expected to reach USD 716.2 billion by 2025, growing with a steady CAGR during the forecast period of 2018 to 2025”

Some of the major players operating in market are Ansteel Group Corporation Limited, ArcelorMittal S.A., China Baowu Steel Group Corporation Limited, EVRAZ plc, Gerdau S.A., HBIS Group, HYUNDAI Steel Company, JFE Steel Corporation, Jiangsu Shagang Group, Nippon Steel & Sumitomo Metal Corporation, Nucor, POSCO, Riva Group, Shandong Iron and Steel Group Co. Ltd., Shougang Corporation, Tata Steel Group, thyssenkrupp Steel Europe AG, Baosteel Group, JFE Holdings, Inc,  Maanshan Iron & Steel Company Limited, Bridon-Bekaert, KOBE STEEL, LTD and SAIL among others.

The major applications of steel as the volume of consumption suggests is the construction and automotive industries. These industries are currently witnessing a positive growth trend which subsequently bodes well for the steel industry and any other associated processing verticals. Due to the wide-spread uses of steel in a variety of applications including the construction and automotive sectors, the demand for high-quality processed steel is all-time high. This is because no end-user wants to spend significant amounts on low-quality steel which they might need to replace or repair over time.