Carbon Steel - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Carbon Steel – Procurement Best Practices & Sourcing Strategies

Carbon Steel Market – Executive Summary, Procurement Insights, Market Analysis, Market Monitoring Insights, Supplier Analysis

1. Executive Summary
1.1. Global Trends
1.2. Supply Market Outlook
1.3. Demand Market Outlook
1.4. Category Strategy Recommendation
1.5. Category Opportunities & Risk
1.6. Talking Points to Business
2. Procurement Insights
2.1. Supplier Watch
2.2. Industry Watch
2.3. Turkey Earthquake Impact
2.4. Category Summary
3. Market Analysis
3.1. Global Market Overview
3.2. Key Market Indicators
3.3. Global Steel Drivers and Constraints
3.4. Crude Steel Production: Heat Map
3.5. Regional Overview
3.6. Porter’s Analysis
4. Market Monitoring Insights
4.1. Cost Structure Analysis
4.2. Commodity Price Forecast
4.3. Raw Material Price Forecast
4.4. Cost Analysis and Expected Savings
4.5. Negotiation Support Levers
4.6. Steel Tariffs & Trade Dynamics
5. Supplier Analysis
5.1. Key Global Suppliers
5.2. Key Regional Suppliers: Capabilities
5.3. Top Suppliers in Key Supply Location: Capability
5.4. Key Global Supplier Profile, SWOT Analysis
5.5. Support Questions for RFP Process
5.6. Sustainability Initiatives

  1. What are the major factors driving development in the global carbon steel market?

The international carbon steel industry’s recognized drivers include the constantly rising construction and automobile sectors. Hence, the steel market is expected to encounter tremendous growth in the upcoming five years.


  1. Which are the steel market’s top-selling components?

One of the leading components of the steel industry is low or mild-carbon steel products, which massively assist in building, automobile, and industrial sectors due to their flexibility and affordability characteristics.


  1. Which country is expected to dominate the global carbon steel market?

Elint’s procurement market analysis says that Asia Pacific’s key regions like India and China are expected to dominate the global carbon steel market, due to constantly rising infrastructural & industrial development projects and the existence of large steel manufacturers.


Carbon Steel Market Global Size:

According to ELINT Market Research’s most recent carbon steel procurement market research report, the worldwide market size was estimated to be worth $1,002.81 billion in 2023. Furthermore, at a CAGR of 3.6%, this industry is predicted to expand and reach $1,284.51 billion by 2030.

Market Definition:

The global carbon steel market executes manufacturing, supplying, and consumption processes for multiple steel products. Carbon steel is a mixture of iron and carbon materials that help to conduct smooth industrial operations. Multiple worldwide businesses and sectors like heavy machinery, automobile, oil & gas, construction, consumer products, etc., employ steel goods due to their strength, adaptability, corrosion resistance, and weightless features.

Major Carbon Steel Market Drivers:

  1. Expansion of Infrastructural and Automotive Projects –

The development of infrastructure projects in the construction industry, such as bridges, buildings, and roads, which majorly demand steel components; so it is the primary driver of the proliferation of the carbon steel market. Moreover, carbon steel also plays a significant role in the automotive industry, helping to manufacture cars and engine parts. This makes it another important component driving market growth for carbon steel.


  1. Consumer Shift from Rural to Urban Places –

There is a growing need for accommodation and other home luxuries, due to the migration of people from rural to urban areas. Thus, the growth of urbanization is also a prominent reason to propel the requirement for carbon steel products.


  1. Evolution of Energy Sector –

Nowadays, the oil and gas sector is evolving, and the need for the construction of drilling sites, pipelines, and other amenities, the majority of which is composed of carbon steel, is also developing. Therefore, it is another important factor contributing to the expansion of the global steel industry.

Carbon Steel Market Challenges:

  1. Fluctuations in Raw Material Prices –

Raw materials play a necessary role in the manufacturing of carbon steel products, and these material prices encounter rapid transitions in the market. Hence, these fluctuations automatically affect the overall price structure of the steel production processes.


  1. Environment Safety Concerns –

Another major challenge that steel manufacturers face is adherence to strict environmental regulations, which push them toward sustainable steel-producing practices. These advanced manufacturing techniques sometimes propel high investments, which is problematic for small and new market players.


  1. Heightened Competition Due to Alternative Materials –

The carbon steel market experienced trouble due to some alternative materials for steel, such as aluminum, hybrid materials, and refined alloys, which most companies use in place of steel. Hence, the carbon steel industry ensures to be competitive and improve the efficiency of their products.

Carbon Steel Market Opportunities:

  1. Environment Friendly Steel Manufacturing –

As environmental concerns are rising day by day, the huge requirement for sustainable steel production techniques is also expanding; hence, it is a great opportunity for businesses working in this market. These corporations can adopt methods, that release less greenhouse gases and reduce carbon count in the atmosphere.


  1. Increasing Demand for High Strenght Steels –

Few sectors like automobile and heavy machinery are experiencing a vast demand for high-strength and low-alloy steels, which help enhance the strength of mechanical components, so they function weightless during industrial operation.


  1. Cutting Edge Carbon Steel Products –

Presently, multiple manufacturers are releasing intelligent carbon steel products, that include handy features like adaptability, erosion resistance, and certain coatings. These smart functionalities make carbon steel goods a vital choice for businesses operating in the metal industry.

Carbon Steel Market Segmentation:

  1. Type of Product –

The foremost segmenting factor for the carbon steel market is that this metal comprises varied product kinds like low, medium, and high carbon steels. These different products cater to the particular needs of worldwide businesses and sectors operating in the steel industry.


  1. Type of End-User Industry –

Another prominent segmenting factor for the steel market is, which industries are employing this metal to fulfill their industrial operations demands. These sectors include automobile, machinery, energy, oil & gas, construction, consumer products and more.


  1. Type of Steel Distribution Channel –

Multiple distribution channels operate in the vast carbon steel market, which includes, manufacturers, suppliers, and online outlets. These distributors understand the steel demand of end users and try to accomplish them on time.

Regional Outlook for the Carbon Steel Market:

The regional dynamics of the carbon steel market represent distinct forecasts, which affect the overall global insights of this sector. In this context, Asia emerged as the over-supplier of carbon steel internationally. It implies that this nation manufactures steel in a huge quantity, and consequently, established itself as a major exporter in the world.


On the other hand, North America produces a lower quantity of carbon steel in comparison to Asia. Hence, it has been identified as an under-supplier, and prime importer of this metal to fulfill its regional steel consumption demands. Likewise, European countries also rely on other nations to import carbon steel to meet their requirements, which implies this territory has less production of steel.

Supplier Landscape and Level of Consolidation in the Carbon Steel Market:

The supplier landscape of the carbon steel market is highly influenced by distinct consolidation levels in various regions. The foremost region is North America, where the degree of consolidation is high, and here, the top six players own a significant 61% stake in the total steel manufacturing capacity share. It indicates that this nation has a robust steel market in which a few key companies greatly influence manufacturing and pricing structures.


Further, similarly, Europe’s carbon steel sector also encounters an increased level of consolidation, and the top five players comprise about 50% portion of the total carbon steel production.


Conversely, Asia represents varied market dynamics from North America and Europe. This territory has a medium level of consolidation and here, 20 prominent industry participants hold 41% part of the whole steel manufacturing capacity. It means a vast amount of companies are collectively contributing to the overall APAC market capacity. Hence, these diverse phases of consolidation in these regions, significantly influence the competition and stability of the steel industry.

Cost Structure in the Carbon Steel Market:

In the global carbon steel market, various regions assess their overall steel manufacturing pricing structure depending on some major factors like energy, labor, raw materials, and more. Thus, in this list, the foremost nation is North America in which energy holds 7.1%, labor owns 8.8%, raw material has 64.1%, and other various aspects have 19.7% portions. This cost breakdown exhibits that raw material prices maintain a crucial position in the prevalent steel cost configuration, and any kind of transformation in its expense could affect the whole pricing.


On the flip side, in Europe, the prominent factors include energy at 19.3%, labor at 8.5%, raw materials at 63.0%, and other elements at 9.4%. Moreover, Asia’s cost structure possesses key factors like energy at 16.9%, labor at 3.2%, raw materials at 77.0%, and other aspects at 6.0%. Hence, raw materials’ high share in the general cost structure represents that, this nation must ensure a constant supply of affordable raw materials for the manufacturing of carbon steel.

Price Analysis in the Carbon Steel Market:

The price trends for HRC, also known as hot-rolled steel coils vary in different nations. In this context, North America experienced approximately a 21-23% increase in HRC prices, in the first quarter of 2023, when compared to the fourth quarter of 2022.


Moreover, in the same forecasted period, Europe experienced an around 11-13% rise in HRC costs, and Asia encountered a roughly 1-2% growth in steel coil expenses. Therefore, these disparate price patterns represent the complicated local market circumstances of these countries, which shape the worldwide pricing dynamics of the carbon steel business.

Leading Market Suppliers of the Carbon Steel Market:

Several prominent companies are functioning within the vast domain of the carbon steel industry, including United States Steel Corp, Nucor Corp​, ArcelorMittal USA LLC​, Steel Dynamics Inc, AK Steel Corp​, ArcelorMittal SA​, ThyssenKrupp AG​, Novolipetsk Steel (NLMK), Evraz Plc., Tata Steel Europe​, Gerdau SA​, ArcelorMittal Brasil​, Usiminas – Usinas Siderurgicas de Minas Gerais SA​, CSN – Companhia Siderúrgica Nacional SA​, Hesteel Group, Nippon Steel and Sumitomo Metal Corporation​, POSCO, Jiangsu Shagang Group Co. Ltd.​, Anshan Iron & Steel (Group) Corp., BlueScope Steel Ltd.​, Sumitomo Australia Pty Ltd.​, Bisalloy Steels Pty Ltd.​, Orrcon Manufacturing Pty Ltd.​, Steelforce Australia Ltd.​, Nippon Steel Corp​, Nucor Corp​, ArcelorMittal USA LLC.

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