by The global Carbon Steel Market is estimated to be valued at US$ 1002.81 Bn in 2023 and is expected to exhibit a CAGR of 3.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Carbon steel is an alloy of iron and carbon with small amounts of manganese and other alloying elements. The carbon content of carbon steels are less than 2.1% by weight. They are the most common form of steel because of its versatility, weldability, and availability. Carbon steels are very cost effective as they are relatively easy to produce. They exhibit good strength and corrosion resistance properties as well as good machinability. Carbon steels are commonly used in applications such as construction industry, machine parts, tools, transportation vehicles, pressure vessels, storage tanks etc. Its high demand comes from construction and machinery industries.
Market key trends:
Rising global energy needs are one of the key trends driving the carbon steel market growth. Carbon steel finds wide usage in energy transmission and production equipment like gas pipelines, steam turbines, pressure vessels etc. According to estimates, global energy demand is projected to rise by nearly 50% by 2050. This rapid increase in energy consumption will boost demand for carbon steel from the energy sector. Furthermore, growth in end use industries like machinery, automotive and construction will also contribute to the increasing consumption of carbon steel during the forecast period.
Porter’s Analysis
Threat of new entrants: The carbon steel market requires large investments and high entry barriers exist for new players due to stringent regulations and established distribution channels of existing players.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of multiple producers and availability of substitutes like stainless steel. However, carbon steel is still preferred for its cost effectiveness.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of raw material substitutes and fragmented supplier base. Major raw materials include iron ore and scrap.
Threat of new substitutes: Threat from substitutes like stainless steel and aluminum is moderate as carbon steel still remains the preferred material for construction, machinery and automobile sectors due to its advantageous properties and low cost.
Competitive rivalry: The market is moderately competitive with presence of major global players. Companies differentiate based on product quality, service and pricing.
Key Takeaways
The Global Carbon Steel Market Size is expected to witness high growth, exhibiting CAGR of 3.6% over the forecast period, due to increasing infrastructure development worldwide. The construction industry is a major end-user of carbon steel due to its high strength-to-weight ratio and cost effectiveness.
Regional analysis – Asia Pacific dominates the global carbon steel market, with China being the largest producer and consumer. Growing construction and manufacturing industries are driving growth in the region. Countries like India are also expected to significantly contribute to market expansion.
Key players operating in the Carbon Steel Market are ArcelorMittal, Nippon Steel & Sumitomo Metal Corporation, POSCO, Tata Steel, Baowu Group, JFE Steel Corporation, JSW Steel, United States Steel Corporation, Shagang Group, Ansteel Group. Major players are focusing on expanding production capacities and integrating vertically to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
