U.S. Flat Steel Market Size, Share & COVID-19 Impact Analysis, By Type (HRC, CRC, Sheets, and Others), By Application (Construction, Automotive & Transportation, Mechanical Equipment, Energy, Packaging, and Others), and Country Forecast, 2023-2030

The U.S. flat steel market size was valued at USD 77.62 billion in 2022 and is projected to grow at a CAGR of 4.6% during the forecast period. 

Flat steel is produced primarily from iron ore, scrap iron, and coal. This product improves the final product's robustness, reliability, consistency, and quality. It also improves the performance of the end-use product, contributing to smoother processing while increasing product yield and shelf life. These factors have increased its demand in the automotive and construction industry. Furthermore, the product is easy to cut, drill, and weld, which makes it ideal for construction applications.

As production and construction activities were halted during the COVID-19 pandemic, the demand for flat steel was reduced by 1.6% in 2020. However, industries such as automotive and construction have gained momentum since 2021, which fueled the U.S. flat steel market growth. 

U.S. Flat Steel Market Trends

Green Steel to Become Center of Attraction in the Long-Term Forecast

Decarbonizing the steel industry has been the center of discussions among steel manufacturers and government bodies for a long time. In response, the Electric Arc Furnace (EAF) manufacturing technology has been commercialized, reducing carbon emissions from the blast furnaces by almost three-quarters. The Blast Oxygen Furnace (BOF) process emits 1.8 tons of CO2 per ton of steel produced, while the EAF process emits only 0.6 tons of CO2 per ton of steel produced.

Emerging technologies such as natural gas-based DRI plants, hydrogen-fueled blast furnaces or DRI plants, and renewable electricity-powered EAF production plants are projected to shape the growth trajectory of the market. Companies such as ArcelorMittal, Nucor Corporation, and Cleveland-Cliffs Inc. have already performed successful trials of the above-listed technologies.

U.S. Flat Steel Market Growth Factors

Automotive Industry to Act as a Growth Lever for the U.S. Flat Steel Market

Steel remains a material of choice in the automotive sector due to its inherent strength, formability, recyclability, and cost. The most important drivers of automotive-grade steel are environmental safety, cost reduction, and comfort. Stringent environmental and safety standards are forcing automakers to reduce the weight of their vehicles. Therefore, high-strength steel is becoming a major part of a vehicle's body frame.

Steel accounts for almost 65% to 70% of the total vehicle weight, making it a key raw material in automotive production, in which flat steel accounts for a significant share. In addition, momentum toward electric mobility will assist in propelling the product demand. Attributed to this, the U.S. automotive sector is projected to generate the demand for flat steel at a rate of 4.2% over the forecast period.

RESTRAINING FACTORS

Various Changes Happening in the Steel Industry to Hamper the Profit Margins

Metallic commodities such as aluminum, iron, steel, copper, and others are bound by the cyclic nature of end-use industries, varying their prices weekly or monthly. Such price fluctuations affect steel production costs, affecting final product prices. In addition, ongoing pressure by regulatory bodies to reduce the carbon footprint is making companies invest in new technologies. So far, no technology can produce large amounts of green steel; however, it is in the research and development stage. The costs associated with using new technologies and increased usage of renewable energy will significantly increase steel production costs. This scenario can restrict traditional steel production and hamper profits due to increased production costs.

U.S. Flat Steel Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into hot rolled coil (HRC), cold rolled coil (CRC), sheets, and others.

The HRC segment held the largest market share in 2022 and is poised to remain the dominant type in the U.S. market. Hot rolled coil offers high strength and is cost efficient, making it an ideal material for applications where dimensions' accuracy is not as important as strength. Its growing consumption in high strength applications such as shipbuilding, rail roads and pipes & tubes will maintain its dominance in the foreseen period.

The CRC and sheet type segments are projected to grow moderately over the study period.

• As per the International Organization of Motor Vehicle Manufacturers, in the U.S., nearly 10.06 million vehicles were produced in 2022. 

By Application Analysis

Based on application, the market is segmented into construction, automotive and transportation, mechanical equipment, energy, packaging, and others.

In 2022, the construction segment captured the largest U.S. flat steel market share. The product is mainly used for roofs, sheds, welded structures, stairs, and others. It is difficult to build stable structures without utilizing steel’s exceptional strength. This durable material keeps floor slabs safe from earthquakes and blunt impacts. It is also used to reinforce the walls of buildings. Carbon steel angles, channels and flat bars are used in the construction field to strengthen foundations and withstand harsh conditions. Such wide adoption of flat steel products has made the construction industry the largest consumer in the U.S. market. 

• In the U.S. steel industry, construction accounted for around 46% of the total domestic shipments in 2022.

List of Key Companies in U.S. Flat Steel Market

In terms of the competitive landscape, the market depicts the presence of established and emerging flat steel companies. Ansteel Group, Boston Metal, China Baowu Group, Cleveland-Cliffs, Nippon Steel Corporation, and Nucor Corporation are a few key players in the U.S. market with a considerable share. It has been observed that leading manufacturers are shifting toward green steel, which will gain huge consumer attention, driving the demand for the same over the assessment period. For instance, companies such as Cleveland-Cliffs and Nucor Corporation have invested millions of dollars in building green steel production plants.

LIST OF KEY COMPANIES PROFILED:

• Nippon Steel Corporation (Japan)


• Nucor Corporation (U.S.)


• Steel Dynamics, Inc. (U.S.)


• Ansteel Group (China)


• Boston Metal (U.S.)


• China Baowu Group (China)


• Cleveland-Cliffs (U.S.)


• United States Steel Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023: United States Steel Corporation closed USD 240 million worth of improvement revenue bonds from the Arkansas Development Finance Authority. This funding would allow the company to extend its EAF-based flat steel production activities. 


• January 2022: Nucor Corporation announced plans to build billion-dollar steel mills to meet the increasing domestic demand.

REPORT COVERAGE

The report thoroughly examines key factors such as leading companies, applications, and products. It also provides information on market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years along with the factors listed above. It examines the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

Report Scope & Segmentation