Flat Steel Market Trends

Growth Drivers

• Growing marine sector - Flat steel is extensively used in shipbuilding for the fabrication of ship hulls and also acts as a crucial part of the stiffeners in different areas of a ship.
  
  With ships carrying over 85% of all goods, the maritime sector is essential to world trade.
• Rising production of automobiles - Among the biggest consumers of flat steel goods is the automotive industry, which uses them to make exhaust systems, frames, chassis, and vehicle bodywork. For instance, more than 85 million motor vehicles were produced globally in 2022, a 5% increase from 2021.
• Flourishing oil and gas business - Flat steel is a type of steel that is mainly comprised of coal, scrap steel, and iron ore, which is also used in the oil, gas, and manufacturing sectors.
  
  In 2023, the worldwide oil and gas sector brought in around USD 5,928 billion in revenue.

Challenges

• Varying prices of steel - The cost of flat steel is impacted by changes in steel prices, which vary at various periods of the year.
  
  The term "steel market price" refers to the total cost of steel in the worldwide market determined by a complex interplay of elements, such as supply and demand dynamics, global economic conditions, and geopolitical events which may impact project budgets in a variety of industries.
• Environmental concerns - The process of making steel uses a lot of energy and has several negative effects on the environment that account for a sizable portion of global CO2 emissions.
  For instance, one of the manufacturing processes with the highest carbon footprints is the production of steel, which accounts for more than 5% of worldwide carbon dioxide emissions.