The global Carbon Steel Market, driven by rapid industrialization in emerging economies, is estimated to be valued at US$ 1076.32 Bn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 To 2031.
Carbon steel contains up to 2.1% carbon giving it excellent welding capabilities that have made it popular across industries like automotive, construction, heavy engineering, machinery etc. It offers advantages like high strength, toughness and resistance at low costs.
The strengthening effect provided by carbon atoms in the metal structure enhances its mechanical properties making it suitable for applications requiring medium strength and workability like machine parts, gears, structures, shipbuilding etc. The Carbon Steel Market Size has been growing steadily due to vast industrial infrastructure development as it supports manufacturing sectors.
Key Takeaways
Key players operating in the global 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.
The growing demand for carbon steel from the construction sector across developing countries is expected to drive market growth. China currently dominates global steel demand due to expanding manufacturing sector and large-scale investments in infrastructure projects.
Ongoing globalization has encouraged key players in the carbon steel industry to expand their business operations internationally. Mergers and acquisitions have further aided companies strengthen their worldwide presence.
Market drivers
Rapid urbanization and growth of smart cities in emerging nations have increased requirement for carbon steel in new residential and commercial construction. Industrial activities are expanding as manufacturing becomes integral to national economies, rising steel necessity. Strong emphasis on infrastructure modernization of roads, railways and energy projects stimulates carbon steel consumption.
Impact of geopolitical situation on Carbon Steel Market growth
The Carbon Steel Market is facing challenges due to the geopolitical tensions and conflicts among major economies. The ongoing Russia-Ukraine war has severely disrupted the global steel supply chain. Both Russia and Ukraine are among the largest exporters of steel and raw materials used in steelmaking. The conflict has restricted the supply of raw materials from the region and disrupted exports. This has put immense pressure on steel prices across the globe leading to inflation. Rising inflation is negatively impacting the demand from major end-use industries such as construction and automotive. Furthermore, lockdowns and restrictions imposed to control the spread of Covid-19 pandemic in China have impacted manufacturing activities and exports from the country. This is limiting the availability of carbon steel in global markets.
Going forward, Carbon Steel Companies need to diversify their sourcing networks and invest in developing alternative supply chains outside conflict-hit regions. Steel producers will need to focus on increasing raw material security and reducing dependence on risky regions. Companies must realign production capabilities and adapt supply chains on a real-time basis according to changing geopolitical scenarios. Governments across countries should implement policies supporting investments into domestic mining and steelmaking projects to reduce import dependence over the long-run.
Geographical concentration of Carbon Steel Market value
The Carbon Steel Market in terms of value is highly concentrated in Asia Pacific region, primarily driven by China. China accounts for over 50% of the global carbon steel production due to presence of a massive manufacturing sector. Other major steel producing nations in Asia include Japan, India and South Korea. The regional market is valued at an estimated USD 500 Bn in 2024 owing to huge demand from manufacturing and construction industries across emerging Asian economies. North America and Europe are other prominent markets, though their combined share is less than 35% of the worldwide Carbon Steel Market value.
Fastest growing region for Carbon Steel Market
The Carbon Steel Market in Middle East and Africa region is anticipated to witness the fastest value CAGR during the forecast period, supported by ongoing infrastructure development drives across GCC countries and Africa. Nations such as Saudi Arabia, UAE, South Africa and Nigeria are investing billions of dollars towards construction of road & rail networks, power plants, industrial parks, and buildings. This is rapidly driving the consumption of construction-grade carbon steels. The increasing population, urbanization and industrialization in MEA region are propelling its share in the global carbon steel demand. Leveraging abundant mineral resources and proximity to large markets, the region holds immense growth potential for carbon steel producers over the coming years.
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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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