In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Carbon Steel is an alloy that is produced in combination of steel and carbon where the carbon content has to be above 2.1%. This steel is available in four different types namely, mild or low carbon steel, medium carbon steel, high carbon steel and ultra-high carbon steel. Carbon steel can be heat treated by various processes to enhance their specific properties, such as by spheroidizing, full annealing, isothermal annealing, quenching, martempering and many more. Carbon steel can be used in various end-user industries by tempering with the innate properties of a specific type of carbon steel. Carbon steel with very high carbon content have lower weldability factor. Carbon steel is one of the widely used end-user industry alloys. However, presence of carbon in steel increases their strength and hardness which makes them an attractive choice for automotive and construction industry manufacturers.
Carbon Steel Market is anticipated to record a CAGR of 9.2% over the forecast period. The carbon steel market is anticipated to value at around 9.8 billion by the end of the forecast period. Many multi-national companies are concentrating towards new product advances in carbon steel. Moreover, the many advantageous properties of carbon steel are exploited in the field of automobile and aviation now and then. New uses for carbon steel derivatives are discovered on regular basis which is expected to drive the carbon steel market rapidly.
Currently the global carbon steel market is observing vibrant growth owing to increasing demand of polymer foams in the market. Advance in aerospace industry in the past few years and growing space explorations is projected to drive carbon steel market besides the wide range of functions of carbon steel in an immense range of products such as flat-rolled sheets, structural steels, pipes and pressure vessels during the forecast period. On the basis of regional platform, global Carbon Steel market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Thin gauge flat carbon steel is used in food and beverage packaging industry, North America is panned to observe substantial carbon steel market growth due to rising packaged food consumption across the region. North America is anticipated to be followed by Europe in terms of consumption on account of expanding presence of many automobile manufacturers in the region. Asia Pacific is expected to drive demand and positively impact carbon steel market growth over the forecast period on account of increasing carbon steel application for making fences, bridges and buildings across the region. Due to multiplying carbon steel uses in end-use industries such as automotive, aviation, construction and various others, Asia Pacific is budding as regional market for carbon steel and its derivatives consumption.
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Our-in depth analysis of the global Carbon Steel market includes the following segments:
By End-User Industry
Global Carbon Steel Market is further classified on the basis of region as follows:
Rising electrical & electronics sector and development of aerospace sector are expected to drive the growth of carbon steel market over the forecast period. Increasing adoption of light weight advanced composites for new generation aircrafts and rising environmental concerns provide momentous growth opportunities for carbon steel composites in the aircraft manufacturing industry. Increasing affluent middle class population in developing regions has raised the demand and sale of automotive vehicles. Further, global automotive industry is booming due urbanization and increasing disposable income. Increasing construction solutions provided by steel makers for buildings and infrastructure is expected to drive the market at a significant rate across the forecast period. Apart from this, wide scale application of steel for reinforcing bars & structural sections, roofing & insulating panels in building and infrastructure is anticipated to strengthen and drive the growth of carbon steels in the upcoming years. According to World Steel Association, approximately 200 Billion cans of foods are produced each year. Further, changing lifestyle coupled with increasing consumption of packaged food in developed nations is anticipated to increase the demand for thin gauge flat carbon steels. Increasing number of research and development activities to further the applications of carbon steel in developing regions is anticipated to positively impact the growth of advanced materials market.
However, decrease in steel capacity utilization ratio, higher pricing of lightweight materials in automobiles and costly MRO (maintenance, repair and overhaul) services for carbon steel products is envisioned to hinder the growth of carbon steel market. Furthermore, superior alternative like stainless chromium-nickel steels present in the market can lower the growth rate of carbon steels over the forecast period.