Stainless Steel Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2390
Stainless steel market growth will largely depend upon its expanding applications in construction, automotive, pulp and paper, medical, food-processing and dairy industries. Stainless steel’s recyclability and corrosion-resistant features have made it highly popular. The material is environmentally neutral and is aesthetically appealing, durable and hygienic, besides having high ductility and high strength. These attributes have made stainless steel products such as duplex steel ideal for a range of applications.
The duplex steel segment will expand at a significant rate during the forecast period 2021-2027, partly due to lightweight, high strength and resistance to stress corrosion cracking. These attributes have made duplex series stainless steel highly sought-after in chemical processing, storage-tank construction, and containers for transporting chemicals. It will continue to be an ideal alternative to carbon steel, with its cost-competitive nature poised augment the stainless steel market growth.
The construction segment will grow at a significant rate over the next few years. Stainless steel is used to provide strength, durability and aesthetic improvements. Notably, the material is sought to make parts of structures such as wall starters, masonry supports, lintels and wind post. Stainless steel is fueling the trend as the “green metal,” and its consumption is poised to soar in construction and capital good sectors.
Asia Pacific is projected to witness considerable growth with exponential rise in production and consumption of building components. According to the International Stainless steel Forum (ISSF), Indonesia will become one of the biggest stainless steel makers globally. Meanwhile, China is the largest stainless steel producer in the world with production of around 30 MT. Moreover, China and India are poised to spearhead stainless steel market growth with growing public infrastructural developments. Oxford Economics predicted annual construction output in China to reach 14.5% in 2021, auguring well for companies vying to expand their foothold.
Major producers in the global stainless steel industry are Nippon Steel & Sumitomo Steel, POSCO, Jindal Stainless, ThyssenKrupp Stainless, ArcelorMittal, Outokumpu, JFE Holdings and Aperam Stainless. They are expected to focus on capacity expansion, mergers and acquisition to bolster their market positions. For instance, POSCO is contemplating an investment of USD 1.2 billion to set up an integrated steel plant in Odisha, India. Besides, Jindal Stainless is planning to almost double its plant capacity to two million tons per annum in India.
Impact of COVID-19 on the global stainless steel industry outlook
COVID-19 control measures will have a major influence on the stainless steel market forecast, with a decline in the construction activities and shutdown of some manufacturing plants. For example, Nippon Steel had announced in March 2021 that it will cut capacity by 10%, after it had already reduced the production by 10% in 2020, following the dip in demand due to the pandemic. Besides, Oxford Economics projected annual construction output in China to plunge 8% in 2020.
That said, they forecast global construction activity to account for $5.8 trillion over the next ten years, spearheaded by the U.S., China, India and Indonesia. While companies have reduced revenue targets over the short-term, the stainless steel market outlook during the period 2021-2027 remains bullish. Stakeholders are expected to set up large capacities and will explore opportunities in the construction sector with the recycling of stainless steel.
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