Market Size of Global Steel Sections Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 6.00 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Asia-Pacific |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Steel Sections Market Analysis
The size of Steel Sections market is USD 110.23 billion in the current year and is anticipated to register a CAGR of over 6% during the forecast period. The market is driven by the huge demand for steel sections at the infrastructure and construction project sites. Furthermore, the residential segment is also creating a huge demand due to its durability and anti-corrosive properties.
- Many metals and steel businesses in advanced markets have benefited from strong pent-up demand and high sales prices in 2021 and early 2022. As a result, profit margins increased, and financial resilience increased. Trade liberalization in the US's partial elimination of Section 232 tariffs on EU aluminum and steel imports should boost European production and exports. Fiscal stimulus has increased demand for metals and steel in key markets such as the United States and China.
- Following a very high growth rate in 2021, US metals and steel output increased by about 5% in 2022, driven primarily by continued robust demand from residential construction, aerospace, transportation, and engineering. However, given high fuel costs and consumer price inflation, the decline in automotive sales in H1 2022 indicates dwindling demand for high-priced, metal-intensive consumer goods. Order backlogs persist in the face of supply chain constraints. While oil and gas prices have skyrocketed, strong demand allows metals and steel companies to pass on higher input costs. These industry benefits have made some US manufacturers return to their home countries to avoid further supply chain disruptions and improve price stability.
- In August 2022, the price range for steel hollow sections in Europe narrowed, despite producers in the region pushing for higher prices due to alarming increases in energy costs. Further, current section prices are based on imported HRC from eastern and southeast Asia, or Turkey, which can take up to three months to arrive in Europe after an order is placed. The price of imported HRC, CFR main port Northern Europe, in May 2022 was EURO 850-920 (USD 891.20-964.59) per tonne. Some mills were also thinking about cutting production to help manage the effects of rising input costs.
- Weathering steel is a term used to describe products made from billets and blooms that are primarily used in the construction industry. They are typically produced in electric arc furnaces. Weathering steel items include rebar, wire rod, merchant bars, rails, and sections. Factors such as rapid urbanization and infrastructure projects such as railways and bridges that require high-strength weathering steel are propelling the market growth.
- However, fluctuations in raw material prices are expected to stymie market growth. Furthermore, the emergence of value-added rebar products, as well as an increase in infrastructure investments, are expected to provide growth opportunities for the weathering steel market in the coming years.
- Although several nations declared the steel sector to be essential, the pandemic has significantly reduced demand for steel production. In an attempt to slow the spread of COVID-19, steel consumption in the automotive industry, one of the biggest consumers, has been reduced. At the same time, falling energy prices have resulted in significantly reduced demand from industries like oil and gas. The COVID-19 outbreak has caused many non-essential building projects to be put on hold, which has hurt steel demand.
Steel Sections Industry Segmentation
Steel sections are long steel products that are used in a variety of industrial applications such as infrastructure and construction, electricity, industrial machinery, and rail. These provide stability and strength to the structure. Rebars, wire rods, tubes, hot rolled plates, and walls are all examples of long steel goods.
A complete background analysis of the Global Steel Sections Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report. The Global Steel Sections Market is segmented By Product Type (Heavy structural Steel, Light Structural Steel, and Rebar), By End-User Industry (Residential, Manufacturing, Aerospace & Automotive, Power and Utilities, Construction, Oil and Gas, and Other End-user Industries), and By Geography (Asia-Pacific, North America, Europe, Latin America, and the Middle-East and Africa). The report offers the market size and forecasts in volume (thousand metric tons) and value (USD billion) for all the above segments.
By Product Type | |
Heavy structural Steel | |
Light Structural Steel | |
Rebar |
By End-User Industry | |
Residential | |
Manufacturing | |
Aerospace & Automotive | |
Power and Utilities | |
Construction | |
Oil & Gas | |
Other End-user Industries |
By Geography | |||||||
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Global Steel Sections Market Size Summary
The global steel sections market is experiencing significant growth, driven by robust demand in infrastructure and construction projects, as well as the residential sector, due to the material's durability and anti-corrosive properties. The market is benefiting from strong pent-up demand and high sales prices, which have bolstered profit margins and financial resilience in the industry. Trade liberalization efforts, such as the partial elimination of tariffs on EU aluminum and steel imports by the US, are expected to enhance European production and exports. Additionally, fiscal stimulus measures in key markets like the United States and China have further fueled demand for metals and steel. However, the market faces challenges from fluctuating raw material prices and supply chain constraints, which have been exacerbated by geopolitical tensions and the ongoing impact of the COVID-19 pandemic.
The steel sections market is characterized by a fragmented landscape with numerous local, regional, and global players, including major companies like Tata Steel and Vallourec. Despite the challenges posed by high energy and commodity prices, the market is poised for growth, driven by rapid urbanization and infrastructure projects requiring high-strength weathering steel. The emergence of value-added rebar products and increased infrastructure investments present further growth opportunities. However, the market's recovery is tempered by economic uncertainties, rising production costs, and fluctuating demand in key regions such as China, Japan, and South Korea. Companies are focusing on technological advancements to enhance production and product quality, while strategic mergers and partnerships, like Tata Steel's consolidation of its subsidiaries, aim to streamline operations and unlock value.
Global Steel Sections Market Size - Table of Contents
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1. MARKET INSIGHTS DYNAMICS
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1.1 Current Market Scenario
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1.2 Market Overview
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1.3 Market Dynamics
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1.3.1 Drivers
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1.3.2 Restraints
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1.3.3 Opportunities
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1.4 Value Chain / Supply Chain Analysis
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1.5 Porters Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Technological Advancements in Steel Sections
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1.7 Insights on Production and Demand for Different Steel Sections
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1.8 Pricing Analysis of the Steel Sections Market
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1.9 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Heavy structural Steel
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2.1.2 Light Structural Steel
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2.1.3 Rebar
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2.2 By End-User Industry
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2.2.1 Residential
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2.2.2 Manufacturing
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2.2.3 Aerospace & Automotive
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2.2.4 Power and Utilities
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2.2.5 Construction
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2.2.6 Oil & Gas
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2.2.7 Other End-user Industries
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2.3 By Geography
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2.3.1 Asia-Pacific
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2.3.1.1 China
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2.3.1.2 India
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2.3.1.3 Japan
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2.3.1.4 South Korea
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2.3.1.5 Rest of Asia-Pacific
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2.3.2 North America
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2.3.2.1 United States
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2.3.2.2 Canada
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2.3.2.3 Mexico
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2.3.3 Europe
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2.3.3.1 Germany
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2.3.3.2 United Kingdom
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2.3.3.3 Italy
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2.3.3.4 France
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2.3.3.5 Rest of Europe
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2.3.4 Latin America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of Latin America
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2.3.5 Middle-East and Africa
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2.3.5.1 Saudi Arabia
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle-East and Africa
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Global Steel Sections Market Size FAQs
What is the current Global Steel Sections Market size?
The Global Steel Sections Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Global Steel Sections Market?
Tata Steel, Vallourec, Yuantai Derun Group, Anyang Steel Group and Youfa Steel Pipe Group are the major companies operating in the Global Steel Sections Market.