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The Carbon Steel Market is Estimated To Witness High Growth Owing To Rising Construction Spending

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Mia Yates
The Carbon Steel Market is Estimated To Witness High Growth Owing To Rising Construction Spending

The 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 iron and carbon alloy in which the carbon content ranges between 0.05% to 2.1% by weight. Carbon steel provides mechanical properties such as high tensile strength, ductility, and toughness that make it suitable for applications in construction, automotive, machinery, and machine components among others. It is relatively an inexpensive material due to its simplicity in production using basic oxygen or electric arc furnace route. These advantages have led to its widespread use in a variety of industries.

Market key trends:

One of the key trends spurring growth of the carbon steel market is the rising construction spending globally. According to The Global Construction 2030 report, the global construction industry is expected reach US$ 15.5 trillion by 2030 from US$ 10.5 trillion in 2019. With rapid urbanization increasing construction of residential and commercial buildings especially in emerging economies, demand for carbon steel for reinforcement and structural applications is growing. It serves as a cheaper and stronger alternative to low carbon steel and other stainless steels used in concrete structures. This burgeoning construction spending will continue driving uptake of carbon steel in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the carbon steel market is moderate. High capital requirements and economies of scale of existing players make entry difficult for new players.

Bargaining power of buyers: The bargaining power of buyers is high due to presence of many established players and availability of substitutes. Buyers can negotiate on price and quality.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials like iron ore required for carbon steel production are abundant and procurement doesn't depend on few suppliers.

Threat of new substitutes: The threat of substitutes is moderate as alternatives like stainless steel are available but are more expensive compared to carbon steel.

Competitive rivalry: High as the market is dominated by few large players.

SWOT Analysis

Strength: Carbon steel is highly versatile, low cost and has high strength. It can withstand moderate tensile stresses and pressures.

Weakness: Carbon steel is susceptible to corrosion if not properly coated or treated. It rusts under moisture exposure. Processing carbon steel requires high energy.

Opportunity: Growth in construction and infrastructure development globally increases demand for carbon steel sheets, plates and structural sections used in buildings, bridges etc.

Threats: Volatility in raw material prices especially iron ore and fluctuations in foreign currency impact costs. Substitutes like stainless steel gaining popularity in certain applications.

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 and construction activities globally. Asia Pacific dominates the carbon steel market in 2023 with a share of over 40%, with China being the largest producer and consumer of carbon steel globally.

Regional analysis - Asia Pacific region is expected to maintain its dominance in the global market during the forecast period, growing at a CAGR of around 4%, driven by strong growth in China, India and other developing Asian countries. China alone accounts for over 50% of global carbon steel production due to availability of iron ore reserves and strong manufacturing base of steel intensive products. North America and Europe are also sizable markets driven by machinery and automotive manufacturing.

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. The market is highly consolidated with the top players accounting for majority share.

Read More: https://www.newswirestats.com/carbon-steel-market-demand-growth-and-regional-outlook-by-2030/

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