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It is estimated that the global alloys market could reach $ 11.3 billion by 2027, not too far really. Right now, the market value stands at $ 9.1 billion, so growth would be 3.2%, a healthy level, especially in the wake of the current pandemic and the way it is growing. affected all industries. Alloy steel distributors are in demand in the United States.
In 2020, US steel production fell 1% in March, to 7 million metric tonnes. However, although this marks a 9% drop from March 2019, total US steel production actually rose 1.6% in 2019 to 88 million metric tonnes, from 86.6 million metric tons in 2018. reduce the market size and of course the market growth so far this year.
Non-ferrous metals as a segment is expected to grow 3.7% and this would reach $ 5.9 billion by 2027. The pandemic has been factored in with the superalloys segment now revised to growth of 2.8 %. This particular segment actually represents 29.7% of the global high performance alloy market.
So how do these numbers measure up in the US market? At present, the United States holds 27% of the world market in 2020. Compared to this, China is expected to grow 5.8% until 2027. The current market for high performance alloys for the United States – United States is currently estimated at $ 2.5 billion in 2020. In contrast, China is expected to reach $ 2.4 billion by 2027.
So what is alloy steel anyway?
For anyone wondering what alloy steel is and the differences, alloy steel is carbon steel combined with one or more elements – copper, chromium, aluminum, titanium, manganese, silicon and nickel. Ultimately, this adds additional hardness and flexibility and can improve the ease of welding as well.
These different alloys can enhance steel in different ways. For example, chromium makes steel harder, while molybdenum increases strength and the ability to resist light later. The reason why it is commercially viable to produce alloy steel is increased hardness, less risk of corrosion and appearance, and it is a strong but flexible material for construction.
Market demand at present
Short-term demand has increased very slightly but overall, demand has decreased since 2019 and particularly over a period of 5 years. In March 2020, steel consumption increased 1.2% from February to 7.8 million tonnes. Overall, demand has fallen 10% since 2019 and 10% overall compared to five years ago. However, if we go back to April 2009, when the demand for steel hit a low level, it has increased by 35% so far.
Who dominates the market relative to the US market share
Although Chinese production increased 5.6% from February to March. But in 2019, it was down 44.4% from 2018. That figure seems even bigger when you look at the major global players. China holds 54% of the market; then you have India, Japan, and the United States at 5% each. Then South Korea and Russia at 4%. Thus, China’s production dwarf is the next 3 largest countries; with the current Covid-19 pandemic and sanctions between the United States and China, the demand for steel from the world’s largest producer may decline slightly, as the United States may even consider increasing its own production. Indeed, the United States looked at its own losses in the market and concluded that it recorded a combined loss of $ 76 million for the first quarter of 2020. However, four of the top five companies made net gains.
So Covid-19 certainly hasn’t helped the industry, but given that the United States is still seeing an increase in the situation in 2009, there is still cause for optimism. It is very likely that more manufacturing will be done at home with much less reliance on buying steel from China (with 54% of the market).
Perhaps once the pandemic is fully under control in the United States, there could be a surge in demand with a gradual increase. Q2 and Q3 will show how these changes in the market affect not only the United States, but also what is imported.
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