Global Steel Processing Market to Generate $884.1 Billion by 2031, Owing to Increase in Urbanization and Infrastructure Development in Developing Countries

Steel processing involves procedures and methodologies to transform iron ore and scrap into steel that can be used for specific manufacturing processes. In these processes, impurities present in iron ore such as nitrogen, sulfur, silicon, phosphorous, etc., are removed. Along with this, important metalloid elements like manganese, vanadium, chromium, nickel, etc., are added to the iron ore so as to produce manufacturing-purpose steel.

Forecast Analysis of the Steel Processing Market

The growing pace of urbanization and infrastructure development in developing countries of the world is predicted to be the primary growth driver of the global steel processing market in the forecast period. Additionally, increasing automobile production and construction businesses across the world is anticipated to push the market forward. Along with this, increasing demand for steel from the global industrial sector is projected to offer numerous growth and investment opportunities to the market in the analysis timeframe. However, environmental regulations with respect to steel processing are estimated to create hurdles in the full-fledged growth of the steel processing market in the coming period.

Regionally, the steel processing market in the Asia-Pacific region is expected to be the most dominant by 2031. Growing demand for steel products from the consumer goods industry is expected to be the leading factor behind the growth of the market in this region.

According to the report published by Research Dive, the global steel processing market is expected to gather a revenue of $884.1 billion by 2031 and grow at 3.1% CAGR in the 2022–2031 timeframe. Some prominent market players include China Baowu Group, Shagang Group, Jianlong Group, ArcelorMittal, POSCO, Shougang Group, Ansteel Group, HBIS Group, Tata Steel Group, Nippon Steel Corporation, and many others.

Covid-19 Impact on the Steel Processing Market

The outbreak of the Covid-19 pandemic has had a massive negative effect on almost all industries and businesses across the world. The steel processing market, too, faced a negative impact of the pandemic. The disruptions in the global supply chains immensely affected the production of steel in industries around the world. Also, since almost all the manufacturing industries were shut down during the lockdown, the demand for steel went down drastically. Both these factors brought down the growth rate of the steel processing market.

Significant Market Developments

The significant companies operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, thus helping the steel processing market to flourish. For instance:

• In November 2021, PSI Metals, a management solutions provider, announced that it was partnering with Smart Steel Technologies, an operating system developer for steel production. This partnership is aimed at developing AI-based applications for the steel production industry. The partnership is expected to help both the companies to increase their footprint in the steel processing industry substantially in the near future.
   
• In October 2022, Steel Dynamics, a leading steel producing company, announced the acquisition of ROCA Acero, a scrap metal recycling company. This acquisition by Steel Dynamics is expected to increase its market share in the next few years.
   
• In April 2023, BICO Steel, a steel processing company, announced the acquisition of RE Metal Finishing, a metal finishing services provider. This acquisition is expected to help BICO steel to expand its steel processing operations and consolidate its lead over its competitors in the industry in the coming period.