Market Overview

The Global Iron and Steel market size was valued at USD 1,656.66 Billion in 2023 and is projected to reach USD 2,273.61 Billion by 2032, growing at 3.58% CAGR from 2024 to 2032.

The global iron and steel market provides the groundwork for industrial development and economic progress in many industries. Iron and steel are applied in a very broad array of sectors in which it plays an indispensable role. Iron and steel are strategic materials that have been crucial to human civilization for centuries; the range of their end-use industries runs from construction and infrastructure, via automotive and machinery, to consumer goods. Due to its versatility and strength, steel is irreplaceable in the creation of complex structures and high-performance products; it can rightfully be termed the backbone of modern industry. The evolution of the market is closely interlinked with the technological development, shifts in industrial practice, and increasing emphasis on sustainable development.

Production of steel starts with the extraction of iron ore, which is then processed in a blast furnace to yield pig iron. Further refining of this pig iron through basic oxygen or electric arc furnace processes results in steel—a final product with the interesting properties of strength, pliability, and corrosion resistance. All these developments in the steelmaking process have contributed to a wide variety of steel grades, each suited to particular end-use industries. For example, high-strength, low-alloy steels find their principal application in the auto sector, where rise in performance, increase in safety, and reduction in the overall weight of the vehicle are some of the important considerations. Likewise, stainless steels, because of their higher resistance to corrosion and oxidation, have a host of applications in building construction, especially in infrastructure such as buildings and bridges.

The iron and steel market is highly cyclical; it follows the demand flows from major end-use industries. Economic growth, urbanization, and industrialization in developing countries drive demand for steel basically, in construction and related infrastructure projects. Meanwhile, economic slowdowns and reduced industrial activity can see the market contract. Global trading dynamics are also driving the market, wherein tariffs, trade agreements, and geopolitical tensions are founding factors of how the flow of iron and steel products is shaped across borders.

Environmental considerations have come more and more into the limelight in the dynamics of the iron and steel market. The process of steel production forms one of the most significant sources of industrial carbon discharges at around 7–9% of global CO2 emissions. This has put continuous pressure on the industry to come out green and reduce its carbon footprint. One such response to environmental challenges is the changing electric arc furnace steelmaking, using scrap steel as its raw material and in the process emitting far less CO2 compared to the basic oxygen furnace technique. Another avenue that looks to be very promising for bringing down emissions is the development of 'green steel,' made by replacing coal with hydrogen in the iron reduction process.

Market Dynamics

Market Drivers

Abundance of Iron Ore & other Minerals For Steel Production

• Iron ore, the raw material used in steel production, is one of the most common minerals on Earth; it comprises some 5% of the Earth's crust. This has been the main factor that has contributed to great availability and huge production of this metal, hence becoming a basic resource for industrialized countries. Major iron deposits in the world are in Australia, Brazil, Russia, and China, where millions of tons of ore are extracted annually by large-scale mining. They are usually composed of high-grade hematite or magnetite ores with a high content of iron and lower energy use in processing to steel.
• Indeed, other than iron ore, there are crucial roles played by other minerals in the process of manufacturing steel. For example, during smelting, manganese is used for the removal of oxygen and sulphur impurities in steel, as well as for enhancement in both the strength and hardness of steel. Likewise, limestone serves as a flux in steelmaking and helps in the elimination of impurities from the iron ore, and then forms slag, which is separated from the molten metal. Another major constituent is coal, more so coking coal, acting as a reducing agent in the blast furnace in order to reduce the iron ore to pig iron.

Increasing consumption of steel in automotive and energy & power industries

• Rising steel consumption in the automotive and energy & power industries emphasizes the role of the material in improving Production Technology in the two sectors and the aspect of furthering their support infrastructure. In the automotive industry, steel boosts the production of such critical parts as the vehicle body and chassis, engine components, and an array of other accessories. Lightweight, high-strength steels are in high demand owing to the pursuit of the weight-saving agenda by car manufacturers in a bid to make fuel efficiency, features related to safety, and environment-friendly vehicles compliant with different regulatory requirements. Weight reduction through high-strength steels, particularly advanced high-strength steels, maintains structural integrity compliance with the vehicle body, thus offering room for better fuel economy with reduced emissions. As the automotive industry continues to advance further with the advent of electric vehicles, there is also wide growth of requirements for special steel parts: bottle casings, electric motor cases, and much more.
• The energy sector and power industry use steel in the making of power plants, transmission towers, pipelines, and renewable energy plants. The rising consumption of steel was further supported by increased usage in renewable energy sources, such as wind and solar power. For example, wind turbines require vast amounts of steel in their towers, nacelles, and blades to generate energy. For equally valid reasons, in the mounting structures and support systems, solar power plants involve massive use of steel. Huge volumes of steel are also required by the oil and gas sector in drilling rigs, pipelines, and offshore platforms, interventions that require durability and resistance to hostile environments.

Market Opportunities

Increased investments and support from governments in emerging economies

• A surge of investment and government patronage in emerging economies is leading to dramatic growth in the iron and steel industry and, in aggregate, supporting the domestic economic growth. Governments in such territories or regions acknowledge the place of steel as a strategic foundation for purposes of industrialization, infrastructural development, and job creation. As such, they put in place several policies and initiatives in place intended to foster domestic steel production, attraction of foreign investment, and creation of technological innovation in the sector.
• Places like India, Brazil, and Vietnam are going ahead with more ambitious government infrastructure projects, building roads, bridges, railway lines, and urban development—consuming vast tonnage of steel. The demand is growing, and the governments are making investments to modernize existing steel plants, increasing their production capacities, and building new ones. Others are offering tax breaks, subsidies, or low-interest loans, among others, in a bid to woo domestic and foreign investors in the industry. This is for increasing steel production and enhancing competitiveness for the local manufacturers in the international market.

Market Restraining Factors

Construction industry’s vulnerability to crisis

• The nature of this industry which involves great investment and a long time before projects materialize, with complex interactions of various stakeholders, a shock or economic upsets have a very special effect on the construction sector. Construction projects are among the very first to be suspended or completely abandoned during crises, such as in recession or at times of financial crisis, mainly due to public and private investments no longer being possible. Budgetary pressures may make governments scale down infrastructure projects, and private developers may either grind work to a halt or at least slow it down in view of the weaker demand and tight financing. One clear implication of this cyclicality is that when the economy falters, the construction sector comes almost to a standstill, translating into lost jobs, reduced materials demand, and general contraction.
• Furthermore, the construction industry is sensitive to interest rates. This impacts mortgage rates, the cost of borrowing, and project viability. When interest rates are raised, funding for a construction project will be more expensive, and thus harder to get financing approved. This could push down the activity levels for both residential and commercial construction and heighten the sensitivity of the industry to difficult economic periods.

Key Industry Developments

In March 2024, ArcelorMittal (the ‘Company’) announces that it has signed a Share Purchase Agreement to acquire 65,243,206 shares, representing c.28.4% equity interest in Vallourec, for €14.64 per share from Funds managed by Apollo Global Management, Inc., for a total consideration of approximately €955 million. Transaction closing is subject to regulatory approvals and is expected to close in the second half of the year

Report Coverage

The report will cover the qualitative and quantitative data on the global Iron & Steel Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations:

Iron & Steel Market Players Analysis:

• Arcelor Mittal S.A.
• China BaoWu Steel Group Corporation Limited
• Nippon Steel Corporation
• HBIS Group
• Jiangsu Shagang Group
• POSCO HOLDINGS INC.
• Tata Steel Limited
• JFE Steel Corporation
• Shougang Grou

Global Iron & Steel Market Segmentation Analysis

By Type

• Iron
• Steel

By Production Technology

• Basic Oxygen Furnace
• Electric Arc Furnace
• Open Hearth
• Others

By End-use Industry

• Building & Construction
• Automotive & Transportation
• Heavy Industry
• Consumer Goods
• Others

Segmentation Analysis

The market scope is segmented because of by Type, by Production Technology, by End-use Industry.

By Type

Based on the Type of the market is segmented into Iron, Steel.

The steel segment dominated the iron and steel market due to the presence of large numbers of end-use industries, particularly across industries and in the development of infrastructure. Basically, an alloy of iron and carbon in small amounts, compared with raw iron, steel gives better strength, durability, and versatility that rules it as the material of choice for a vast range of end-use industries. These run from construction and manufacture of automobiles to machinery and shipbuilding, down to household appliances. It can also be produced in various grades and forms, such as carbon, stainless, and alloy steels, which further increase its usability for specific industrial applications.

The dominance is due to several different reasons, but mainly, it is due to the application of steel in the construction industry where it finds wide application in skyscrapers, bridges, and road projects. Steel is also used heavily in the manufacture of vehicle frames and body panels of automobiles and in many other vital parts because of the requirements of strength coupled with its inexpensive nature. Moreover, the recyclability has added to the sustainability credentials of steel amid an increasingly global drive toward circular economies and reducing environmental impact.

By Production Technology

Based on the Production Technology of the market is segmented into Basic Oxygen Furnace, Electric Arc Furnace, Open Hearth, Others.

Production technology segments involved within the industry, it has traditionally been the basic oxygen furnace. It is due to its efficiency, scale, and capacity for large volumes of high-quality produced steel that the BOF process, otherwise called the Linz-Donitz process, dominated this particular industry of steelmaking. In this process, scrap steel is added to the molten iron tapped from a blast furnace and oxygen is blown through the mix to reduce the carbon content of the resultant high-purity steel. Since the BOF process has very little tolerance level for deviation in composition, it can produce steels with very precise chemical compositions, necessary for End-use Industries such as automotive, construction, and heavy machinery.

The first reason that the BOF process dominates is its huge production capabilities, thus making it highly suitable for output to carter the enormous demand of steel worldwide. This method is used in countries where there is an abundance of iron ore supplies combined with well-developed blast furnace infrastructure; these countries include China, India, and Japan. This scalability of BOF plants accommodates the integration of modern technologies and automation to increase production efficiency and lower costs.

Regional Snapshots

It offers insight into the markets in North America, Europe, Asia-Pacific, Latin America, and MEA. Of all the regions in the global steel market, the lead has always been held by Asia-Pacific. The probable reasons behind this domination by the region are a huge industrial base, rapid urbanization, and strong demand from the construction and automotive sectors. Large steel producers include China, India, Japan, and South Korea, and more than half of the world's steel is produced in China. A massive availability of raw materials, mainly iron ore and coal, with government support and large-scale infrastructure projects, were backbones to support industries in the Asia-Pacific region. Furthermore, the increase in population and rise in income levels within the region have encouraged demand for housing, automobiles, and consumer goods, therefore further stimulating steel consumption.

China has been major in this dominance, The country, being the largest producer and consumer of steel globally, along with huge infrastructure works, rapid road development, urban expansion, and bridging projects, continues to make demand for the region's steel. Added to this, the growth of manufacturing hubs in countries such as India and Vietnam further fuels Asia-Pacific leadership in the steel industry.

Iron & Steel Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.

The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.

The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.

Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.

The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions

• How much the global Iron & Steel Market valued?
• Which region has the largest share in 2022 for the global Iron & Steel Market?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Iron & Steel Market

• Historic year: 2019- 2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million

Iron & Steel Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: