Finished Steel Products Market Overview
Finished steel products market size is forecast to reach US$2.5 Billion by 2027 after growing at a CAGR of 3.5% during 2022-2027. Finished steel products are the products made by the steel industry in the form that is tailored and is ready for trading to the customers of the steel industry, such as the engineering and construction industries. The steel products are manufactured in micro-alloy steel, mild steel, high alloy steel quality, plain carbon steel, or low alloy steel. Finished steel products are manufactured by processes such as hot-rolling, cold-rolling, forging, and others. The rise in the demand for finished steel products in the appliances, transportation, and construction industries is increasing the market’s growth. Additionally, an increase in renovation activities in the construction industry, with the government’s rise in investments in automotive and commercial projects, is estimated to propel the finished steel products market during the forecast period.
The COVID-19 outbreak widely affected the building & construction, electrical & electronics, and transportation industries over 2020. Owing to the nationwide lockdown, the production process of various goods in these industries declined due to the non-functioning of the manufacturing plants. The domestic sales and export of different raw materials have also witnessed a halt during the COVID-19 outbreak. Economies of each sector are affected and have even resulted in stagnation in activities across the industries that uses finished steel products and galvanized steel. However, once the construction and transportation activities get back on track and start functioning fully, by 2021, the market for finished steel products is estimated to incline.
Finished Steel Products Market Segment Analysis – By Form
Strip segment held the largest share in the finished steel products market in 2021. Cold rolling of metal strips within the metalworking industry is a particular segment. Strip steel finds usage in appliances like dryers, refrigerators, and washers. Strip steel is non-shrinking at ambient temperatures and is a uniform, lightweight steel that is easy to install, fabricate, and transport. The unique characteristics of strip steel have made it a famous material for use in the building and construction industry, such as floor decking products, secondary structural products, and light steel framing. Thus, with the growing demand for the strip segment, the finished steel products market is estimated to grow during the forecast period.
Finished Steel Products Market Segment Analysis – By Process Type
The cold-rolling segment held the largest share in the finished steel products market in 2021. It is a process operating at a temperature below its recrystallization temperature, by which the metal is passed through the rollers. The metal is compressed and squeezed to raise its yield strength and hardness. Cold rolling is a chosen segment over others due to its cost-effectiveness, being environmentally friendly, superior product performance, and high production output. Also, cold rolling provides design freedom, unlike hot rolling and forging, and intricate shapes can be manufactured. Additionally, hot rolling is not environment friendly due to the pollutants produced by its heating process. Thus, with the growing demand for the cold rolling process, the finished steel products market is estimated to grow during the forecast period.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=503163
Report Price: $ 4500 (Single User License)
Finished Steel Products Market Segment Analysis – By Application
The metal roofing segment held the largest share in the finished steel products market in 2021. Finished steel products are majorly used to provide high strength, relatively low costs, and safety compared to other materials by processes such as hot-rolling, cold-rolling, forging, and others. In the construction, healthcare, and automotive sectors, finished steel products can be used for metal roofing and other applications. The attractiveness of metal roofing is the ability to have any roof style while maintaining the strength, longevity, low maintenance, strength, and eco-friendliness of metal roofing. Metal roofing provides structural stability along with substantial savings in construction activities. Larsen & Toubro, in India, in 2019, won contracts for building hospitals, commercial complexes, and manufacturing capacity. The orders range between 2,500 crores (US$ 336.6 million) to 5000 crores (US$ 673.2 million), falling under the large category. Thus, such investments will drive the demand for metal roofing type applications and raise the market’s growth over the forecast period.
Finished Steel Products Market Segment Analysis – By End-Use Industry
Building and construction industry held the largest share in the finished steel products market in 2021 and is estimated to grow at a CAGR of 4.1% during 2022-2027. The effective use of the finished steel products is linked to the construction industry. Sizeable structural steel can be built in a short period at a low cost. Some of the crucial forms of finished steel products used in the construction industry include strips, profile, rods, and others. Durability, eco-friendly nature, and cost-effectiveness of the finished steel products are the main characteristics that make them a viable option for the construction industry. With the rising building and construction activities, the demand for finished steel products is also rising. The building and construction activities are increasing rapidly in emerging economies such as India, United States, China, and other countries. For instance, according to the World Bank, in 2020, the building and construction industry reached about US$ 11.9 trillion, with an increase of about 4.2% from 2019. Thus, with the construction sector’s growth, the finished steel products market will rise further over the forecast period.
Finished Steel Products Market Segment Analysis – By Geography
Asia-Pacific region dominated the finished steel products market with a share of 40% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for finished steel products in developing countries such as China, Japan, India, and South Korea. During the forecast period, China is expected to continue its dominance in the finished steel products and galvanized steel market due to its growth in the transportation and construction industries. For instance, according to International Trade Administration, in China, construction industry revenue was reported to increase from US$ 968 billion in 2019 to US$ 1.1 trillion in 2021. India and Taiwan are also predicted to grow their finished steel products market during the forecast period, with increased investments by the government in construction, transportation, and other end-use industry. According to Invest India, in 2020, the transportation industry was worth US$ 806.63 billion and is further expected to grow at a CAGR of 5.9%. Finished steel products are used in automobiles to enhance safety and improve the fuel efficiency of vehicles. Thus, the rising usage of finished steel products in various end-use industries will drive market growth in the forecast period.
Finished Steel Products Market Drivers
Increasing Demand for Finished Steel Products in the Transportation Industry
Globally, automakers use finished steel products as a chosen material due to their properties such as high strength, relatively low costs, and safety compared to other materials. In cars, the underlying chassis that forms the structure of the car’s body and provides protection from crashing, roofs, door beams, and even body panels are made up of steel. Advanced high-strength steels (AHSS) are excessively used in about every vehicle’s body, making up to 60% of the vehicle’s body of structural steel. AHSS provides lightweight, optimized vehicle designs to enhance safety and improvement in fuel efficiency. In the projected period, the rising production of automotive will raise the demand for finished steel products, which will drive the finished steel products market. For instance, according to the International Trade Administration (ITA), in China, the government anticipates automobile manufacturing to reach 35 million by 2025, making China the world’s largest vehicle market. Thus, increasing automation production will require more automotive components, which will drive the finished steel products market during the forecast period.
Increasing Investments for the Production of Steel Will Drive the Finished Steel Products Market Growth
Increasing government and private sector investments to produce steel for various end-use industrial applications will grow the finished steel products market. For instance, according to the Indian Brand Equity Foundation, in April 2021, Mr. Shin Bongkil, the South Korean Ambassador, announced the investment of US$ 12 billion by POSCO – the South Korean steel giant, under the plan to set up an integrated steel plant in Odisha, which is anticipated to make it the largest FDI project of the country. Additionally, the Ministry of Steel, in the eastern region of the country, announced to invest US$ 70 million through accelerated development of the sector. Thus, increasing investments for steel production will act as a critical driver for the growth of the finished steel products market during the forecast period.
Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=503163
Finished Steel Products Market Challenges
Rising Demand for Substitutes Will Hamper the Market Growth
Substitutes of steel, such as aluminum, titanium, and other metals, possess properties superior to steel, hindering the market growth. Aluminum does not require paint or coating as it does not rust or corrode; aluminum is a material of choice due to its malleability and elasticity. On the other hand, steel usually needs to be painted to protect it from rust and corrosion, especially if the steel part is required for use in a moist or abrasive environment. Steel is strong and less likely to deform or bend underweight, force or heat. It is much heavier than aluminum. Additionally, titanium has a density of about half of steel, making titanium desirable over steel in applications that need the strength of steel in a lighter weight. Thus, titanium finds usage in aircraft parts and other weight-dependent applications. Furthermore, magnesium is 75% lighter than steel; consolidation of multiple elements into a single component can be achieved by magnesium, making the tooling and welding cheaper than steel. Also, magnesium acquires superior dimensional stability and repeatability over steel. Thus, due to the rising demand for substitutes, the finished steel products market is estimated to get hindered in the forecast period.
Finished Steel Products Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Finished steel products top 10 companies include:
2) HBIS GROUP
3) Baosteel Group
4) Tata Steel
5) JFE Steel Corporation
6) Jiangsu Shagang Group
7) United States Steel
8) China Ansteel Group Corporation Limited
In December 2019, ArcelorMittal announced that it had completed Essar Steel India Limited’s acquisition and simultaneously established a joint venture with Nippon Steel Corporation, known as ArcelorMittal Nippon Steel India Limited. With this acquisition, the company aims to enhance its production presence in India for over a decade and Nippon Steel, accelerated towards becoming the best steelmaker with world-leading capabilities.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=503163
Asia Pacific region dominates the finished steel products market owing to the rising growth and increasing investments in the steel industry. For instance, according to the Indian Brand Equity Foundation, in 2021, Tata Steel has decided to invest a sum of US$ 3.64 billion to increase the capacity of its Kalinganagar integrated steel plant from 3 million tonnes to 8 million tonnes.
The rise in the adoption of finished steel products in the transportation industry due to its high strength and relatively low costs is estimated to drive market growth in the upcoming years.
The increasing demand for finished steel products in various industries, such as the healthcare industry with applications such as hip implants and suture needles, will drive the growth of the finished steel products market in the forecast period.
However, the rising demand for substitutes such as aluminum, magnesium, and titanium owing to their advantageous properties can hinder the growth of the finished steel products market.
Steel Fabrication Market – Forecast (2021 – 2026)
Global composite Metal Finishing Market – Forecast (2021 – 2026)
For more Chemicals and Materials related reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to firstname.lastname@example.org to discuss more about our consulting services.