Widening Range of End-use Applications will Drive Growth; Construction Industry Boosts Demand
Due to its material properties such as hardness and strength, carbon steel is used as an integral material in the manufacturing of various cutting tools. Furthermore, attributing to its amenability, carbon steel is also used in sheeting as well as in different other structural forms in other industrial processes such as welding and tooling.
In addition, its applications in the automotive industry are gaining momentum as most of the automobile bodies are manufactured using carbon steel. Along with automotive, shipbuilding and road road manufacturing also involve incremental use of carbon steel, which is triggering the growth of the carbon steel market across the world.
However, the building & construction industry accounts for a significant revenue share in the global carbon steel market. Various construction applications trigger the need for a material with properties such as plasticity, ductility, flexibility, and endurance in case of various natural calamities such as earthquakes, and carbon steel remains the most favoured material in these applications. Owing to its strength, carbon steel remains the most commonly used element in construction activities, which triggers manufacturers to tap into new opportunities in developing countries with incremental urbanization activities.
Manufacturers to Focus on Reducing Carbon Emissions and Energy Consumption during Steel Mining
The carbon steel market is known for its paramount impact on the environment, as steel mining activities accounts for heavy energy consumption, contributing to the carbon footprint of businesses. The world is waking up to the declining air quality and many other environmental hazards, which are caused due to human activities and increasing pollution caused by industrial processes. This has become an alarm for the carbon steel market, and leading players are investing heavily in research & development to find ways to reduce the energy consumption of their manufacturing facilities without compromising with quality and efficiency of their business operations.
COVID-19 Pandemic has Slowed Down Carbon Steel Manufacturing Activities
A majority of the stakeholders in the carbon steel market have the automotive industry and construction industry as the primary end customers. However, the global outbreak of the novel coronavirus has hampered operations in these industries, causing disruptions in the carbon steel market. Thereby, the coronavirus crisis has triggered a majority of leading manufacturers of carbon steel to slow down their business operations, and modify their new strategies anticipating the changing market conditions worldwide.
Carbon Steel Market: Region-wise Analysis
Geographically, the global carbon steel market is segmented into seven regions - North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East and Africa. In recent times, Asia Pacific has exhibited exceptional growth prospects for stakeholders in the global carbon steel market. Being the leading manufacturer as well as consumer of carbon steel, Asia Pacific region gains an edge with the presence of a large number of global leaders, which is mainly attributed to a rise in local demand. Especially in China, the demand for carbon steel is increasing, and global players are expanding their base in Asia Pacific to offer cost-competitive products and capture more growth opportunities.
The burgeoning rise in urbanization and industrialization in the developing economies across Asia Pacific contributes to the overall demand for carbon steel across the region. Asian countries followed by European countries will continue to trigger the manufacturing as well as sales of carbon steel in the coming years. European countries will exhibit the rising industrial activities in the automotive sector, and this will boost the demand for carbon steel in the region. Furthermore, its adoption in the railway and ship industry will also influence new opportunities for carbon steel manufacturers in the region, in the coming years.
Carbon Steel Market: Competitive Landscape
- JFE Steel Corporation
- Omega Steel Company
- Nippon Steel Corporation
- Bushwick Metals LLC
- Baosteel Group
- Curtis Steel Co., Inc
- ArcelorMittal SA,
- Afarak Group
Merger & acquisition activities are gaining momentum in the carbon steel market, as leading players are aiming to expand their facilities as well as product portfolios across the world by purchasing manufacturing facilities of small market players.
In March 2020, Cleveland-Cliffs, Inc. (formerly Cliffs Natural Resources) - a Cleveland, Ohio-based company that specializes in the beneficiation, mining, and pelletizing of iron ore - announced that it has completed the acquisition of AK Steel Holding Corporation - a steelmaking company headquartered in West Chester Township, Butler County, Ohio. The company declared that the deal was closed at US$ 1.1 billion and the new company would begin the operations at a unique position of strength in the North American region through its diverse assets including metallics, iron ore, and steel.
In February 2020, C-Chem Co., Ltd - a subsidiary of NIPPON STEEL Chemical & Material Co., Ltd. - along with Fangda Carbon New Material Co., Ltd. (Fangda Carbon) - a China-based company principally engaged in the production and sales of graphite and carbon products - announced that they have acquired Koppers (Jiangsu) Carbon Chemical Company Limited (KJCC) - a tar distillation facility in Pizhou City, Jiangsu Province, China. The total purchase price was finalised at US$ 107 million.
- North America (U.S., Canada)
- Latin America (Mexico, Brazil)
- Europe (Germany, U.K., France, Italy, Spain, Poland, Russia)
- East Asia (China, Japan, South Korea)
- South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
- Oceania (Australia, New Zealand)
- Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
Carbon Steel Market: Segment Analysis
The carbon steel market can be segmented on the basis of the following:
- Low carbon steel
- Medium carbon steel
- High carbon steel
- Building and Construction
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