Top 3 Trends Affecting the Global Stainless Steel Market Through 2025

The Global Stainless Steel Market is ready to develop at a CAGR of around 6.3% from 2015 to 2025.

The top three important rising trends driving the worldwide stainless steel market are:

  • Rise in the utilisation of Iron Scrap
  • Pre-engineered buildings: A new wave in the market
  • Rationalisation of capacity

Rise in the utilisation of Iron Scrap

Nations like India and China are expanding the utilization of scrap iron keeping in mind the end goal to decrease their carbon footprint. The reusing of scrap enhances the business’ economic viability and furthermore lessens the ecological impact by eliminating the requirement for iron ore extraction for steel generation. This lessens carbon dioxide emissions significantly, saves energy and water utilization, and furthermore decreases air pollution.

On average, 1.787 tonnes of carbon dioxide is saved for each tonne of scrap steel. This shows the steel industry’s commitment to conserving energy and natural resources. Due to these efficiencies associated with steel scrap, it has become a choice of raw material for steel producers (and in turn, stainless steel). Thus, the concern toward global warming by the steel industry is driving the growth of the global stainless steel market. All things considered, 1.787 tonnes of carbon dioxide is saved for every tonne of scrap steel. This demonstrates the steel industry’ dedication to moderate energy and natural assets. Because of these efficiencies related to steel scrap, it has turned into the best choice of raw material for stainless steel makers. In this manner, the worry toward global warming by the stainless steel business is driving the development of the worldwide stainless steel market.

In addition, restriction on nickel ore exports is also expected to increase the use of steel scrap for stainless steel production.

Pre-engineered buildings:

Stainless steel is broadly utilized as a part of pre-engineered buildings (PEB) for structures frameworks, material, and so forth. It ensures the building framework in adverse ecological conditions. The worldwide PEB market was esteemed at near USD 9 billion in 2015 and is required to surpass USD 15 billion in 2020, posting a CAGR of near 12%.

The automotive, logistics and warehouse, pharma, quick moving consumer products, and retail divisions give noteworthy development chances to the worldwide PEB advertise. Numerous PEB producers have joint efforts with coordinations organizations or have built up their own particular in-house logistics capacities.

Rationalization of capacity:

Rationalization of capacity will gain traction in this market. China has the biggest excess steel capacity in the world. As per the draft released by the Chinese government, Steel Industry Adjustment Policy (2015 Revision), the Chinese steel industry will be moved toward another financial model in order to deal the excess steel capacity in China.

It also aims at accomplishing 80% capacity utilization by 2017. To achieve this, the Chinese steel sector will need a closure of 112.5MMT of capacity for each year keeping the production same. As of now, the steel capacity usage is below 70% in China.

In EU, there was a temporary closure of capacity after the worldwide financial crisis. However, just 5% capacity has been for all time shut since 2009. As per OECD, there will be a decrease of around 2MMT of capacity from 2013 to 2017 in the region. Steel plants in Europe are running at lower capacity usage. TATA Steel is wanting to close its loss-making steel plants in Europe. The European government is planning to force stricter anti-dumping measures, particularly against Russian and Chinese steel players.

Related Posts