Carbon steel consists of iron alloyed with an appropriate amount of carbon to achieve the desired mechanical properties. It provides higher strength and ductility compared to pure iron. Carbon steel finds extensive applications in construction industry owing to its strength and relatively lower cost. It is used for manufacturing rebars, structural I-beams, angle bars and channels that are used in construction of buildings, bridges and infrastructure facilities.
The global Carbon Steel Market is estimated to be valued at US$ 1076.32 billion in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period of 2024 to 2031.
The growing construction activities across both developed and developing nations is driving the demand for carbon steel bars and sections. The cost effectiveness of carbon steel compared to other steel varieties makes it a preferred choice for construction purposes. Further, strong focus on development of infrastructure is anticipated to fuel the Carbon Steel Market Size during the forecast period.
Key Takeaways
Key players operating in the Carbon Steel Market are Nippon Steel and Sumitomo Metal Corporation (NSSMC), POSCO, Tata Steel, Baowu Group (China Baowu, Steel Group Corp.), JFE Steel Corporation, JSW Steel, United States Steel Corporation (U.S. Steel), Shagang Group, and Ansteel Group. Nippon Steel is the largest steel producer globally with extensive product portfolio and strong distribution network across Asia Pacific, Europe and North America.
The growing infrastructure development activities in countries such as China, India and Southeast Asian countries present huge opportunities for Carbon Steel Market players. The governments in these regions are focusing on development of road, rail, metro and other infrastructure projects which is poised to drive the demand for construction-grade steel.
The key market players are expanding their footprint in developing regions through acquisitions and partnerships with local players. For instance, Tata Steel acquired Bhushan Steel to expand its presence in India. Similarly, POSCO has production facilities across China and Southeast Asia to cater to the growing infrastructure needs of these economies. The growing construction markets in Asia and Africa are attracting major global steel players.
Market Drivers
Rising infrastructure development activities: Growing construction of roads, bridges, metro networks, commercial buildings and other infrastructure projects worldwide is driving the demand for carbon steel which finds major applications in construction industry. According to World Bank, the global infrastructure spending is estimated to grow at 5% CAGR between 2020 to 2040.
Cost effectiveness: Carbon steel offers strength and toughness at relatively lower cost compared to its alloyed variants such as stainless steel. This makes it a preferred choice for applications where aesthetics and corrosion resistance are not critical requirements. The competitive pricing of carbon steel drives its adoption across price-sensitive end-use industries.
Market Restrain
Volatility in raw material prices: Fluctuations in prices of key raw materials including iron ore and coking coal impact the production cost of carbon steel. Any substantial increase in input costs can negatively affect the profitability of Carbon Steel Companies. The Carbon Steel Market players have limited control over the prices of raw materials which are traded globally.
Environmental concerns: The steel manufacturing process involves several emissions releasing operations such as coke production, ironmaking and steelmaking. The carbon dioxide and other emissions released from steel plants are a cause of concern. Growing environmental regulations worldwide may restrain the growth of carbon steel industry to some extent in coming years.
Segment Analysis
The Carbon Steel Market comprises structural steel, mechanical steel, boiler and pressure vessel steel, and railway steel. The structural steel segment holds the largest market share and is dominating the global Carbon Steel Market. This is because structural steel like rebars and angles & channels are used in large quantities in construction activities like building infrastructure projects. Mechanical steel comes in second owing to use in machinery manufacturing.
Global Analysis
Regionally, Asia Pacific dominates the global Carbon Steel Market and is the fastest growing region. This is due to high economic growth and development activities in emerging economies like China and India which have resulted in rapid urbanization and strong growth in end-use industries like construction, machinery, and automotive. China alone contributes to over 50% of the global demand for carbon steel. Europe and North America are other major regions for Carbon Steel Market. However, their growth is stagnant due to maturity of developed markets and stringent environmental regulations limiting steel production. Developing countries in Asia Pacific and Middle East & Africa will drive future growth in the global Carbon Steel Market.
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About Author-
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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