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Stainless Steel Market to Reach 47.2 Million MT by 2021, Says Beroe Inc

RALEIGH, North Carolina, Oct. 10, 2019 /PRNewswire/ -- The global market for stainless steel is expected to grow at a CAGR of 3 percent, with the production continuing to be higher than the consumption, according to Beroe Inc., a procurement intelligence firm. The market is driven by increasing demand from multiple downstream industries, and technological advancements in the field.

Beroe Logo

Asia would continue to dominate the stainless steel market with the highest growth in the next few years further boosted by the large number of manufacturers in China, India, and Japan, and demand from chemical/petrochemical and energy, consumer goods and medical, and automotive and heavy transport industries. While consumption in the Americas and EMEA regions has grown slower, the growing construction sector in France, Germany, and the UK is expected to fuel demand over the forecast period.

https://www.beroeinc.com/category-intelligence/stainless-steel-market/

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

Increasing demand from downstream industries, such as agriculture, processing industry, consumer products, construction industry, is expected to be the primary driver of the stainless steel industry. Increased focus on reducing the total ownership cost of the stainless steel-making process and attain lower cycle times has led to the adoption of newer technologies, further driving the growth of the market. Lower Profit Margins pose a challenge to the market as suppliers are susceptible to commodity price fluctuations, against which they cannot hedge, due to the relatively smaller period of contracts. Steel, its raw materials and its products have high logistics costs, lowering profit margins further.

Globally, the growth is shifting from traditional consumers of stainless steel (consumer goods, architecture, construction, etc.) to extensive use of stainless steel by auto, railway, transportation, building, and construction sector. Stainless steel market, which was dominated by cookware & durables, at present, constitute only 50% consumption with the addition of process industry, automobile, railways, and transportation joining the league.

Key Findings:

  • Biggest end-user industry for stainless steel is architecture, building & construction, and it is estimated that the demand for steel from this sector would continue to grow at a CAGR of 5–5.5 percent till 2021.
  • The level of competition among suppliers is high, due to high investment costs, excess capacity, and high exit barriers. There is a greater demand for stainless steel suppliers, thereby increasing the rivalry among existing suppliers.
  • In emerged markets, such as North American and European nations, the total price for stainless steel depends on base price, extras, and alloy surcharge. In emerging markets, such as Asia, the total price of stainless steel is largely dependent on nickel prices.
  • Contract-based pricing is widely prevalent, however, steel mills have moved away from long-term fixed pricing toward short-term fixed pricing contracts, long-term index-based pricing contracts, and a surcharge-based system.
  • Stainless steel is a significant market for the producers of chromium (96 percent for the metallurgical grade), nickel (65 percent of production), and molybdenum (35 percent of total production).

The research methodology adopted for the report included:

  • Experts with twenty years of domain experience
  • Interaction with buyers
  • Inputs from supply chain partners

The buyer's ability to use substitute materials/services is medium. For instance, Grade 304, 316 and 416 are the alternative grades for Grade 303, mainly due to better corrosion resistance, formability, and high machinability but the price difference between the materials makes substitution difficult. For instance, in the US, Grade 304 stainless steel is priced around 3,136 $/MT, whereas Grade 316 stainless steel is price around 4,018 $/MT.

The report also includes:

Market Analysis:

  • Market Overview
  • Market Drivers and Constraints
  • Regional Market Outlook
  • Global Porter's Five Force Analysis

Supply Analysis:

  • Regulatory Analysis
  • Supplier Profile
  • SWOT Analysis

Cost and Pricing Analysis:

  • Cost Structure
  • Price Trend and Forecast
  • Pricing Model

Industry Best Practices:

  • Industry Activities
  • Contract Models
  • Technology Development

About Beroe Inc.:

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com

Logo: https://mma.prnewswire.com/media/777512/Beroe_Logo.jpg

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