The Metals industry is shaped by various trends and driving factors, which evolve over time. While some drivers remain constant, many trends develop gradually over the years. These trends can often be further broken down into more specific sub trends, yet they can also be part of broader, global trends. Understanding these dynamics is crucial for gaining insights into the industry's trajectory.
The video explains the Metals industry specific drivers and their impact on global trends.
Overview of Steel Market Trends
The global steel market experienced notable shifts from 2023 to 2024, with changes in steel use, production, and consumption patterns. These changes highlight how the metals industry has moved from oversupply in 2023 to undersupply in 2024, influencing pricing, demand planning, and supply chain decision-making.
Steel demand is distributed across several core industries. In both 2023 and 2024, the segments and proportions remained stable:
- Building & Infrastructure – 52%
- Mechanical Equipment – 16%
- Automotive – 12%
- Metal Products – 10%
- Electrical Equipment – 3%
- Domestic Appliances – 2%
- Other Transport – 5%
These consistent percentages show that steel's demand base is steady, with building and infrastructure remaining the dominant sector.
Steel Use Comparison
Steel Use
| Year | Tonnes |
|---|---|
2023 Steel Use | Total: 1,763 million tonnes |
2024 Steel Use | Total: 1,742 million tonnes |
Global Steel Production Trends
Global Steel Production Trends
| Year | Tonnes |
|---|---|
2023 Crude Steel Production | 1,892 million tonnes |
2024 Crude Steel Production | 1,676 million tonnes |
Across both years, China remains the dominant contributor to global crude steel production, accounting for approximately 49–54% of total output. Other key producing regions include India, Japan, the European Union (EU-27), the CIS and Ukraine, other European countries, North America, other parts of Asia, the Middle East, Africa, South America, and Australia and New Zealand. Together, these regions make up the remainder of worldwide production and reflect a broad global distribution of steel manufacturing capacity.
Global steel consumption showed a slight decline from 2023 to 2024, decreasing from 1,763 million tonnes to 1,742 million tonnes. In both years, China remained the dominant consumer, accounting for approximately 49–51% of total finished steel use. The remaining consumption was distributed across regions in proportions that closely mirrored global steel production patterns. Overall, the dip in consumption between the two years aligned with the slight decline in total steel use.
A critical trend observed across the two years is the shift in the global market balance. In 2023, the market experienced an oversupply, with production reaching 1,892 million tonnes while consumption was 1,763 million tonnes—resulting in a surplus of 131 million tonnes, or roughly 7%. In contrast, 2024 saw an undersupply, as production fell to 1,676 million tonnes while consumption reached 1,742 million tonnes, creating a deficit of 68 million tonnes, or about 4%. For SAP users, these shifts have meaningful implications: the oversupply in 2023 suggests conditions that could lead to lower prices and increased inventory buildup, while the undersupply in 2024 may lead to tighter inventories, upward pricing pressure, and increased complexity in production and supply planning.
Summary
- Industry Trends: The Metals industry is influenced by evolving trends and drivers, with some remaining constant while others change gradually. Understanding these dynamics is key to anticipating the industry's future.
- Steel Challenges: The steel industry faces challenges such as overcapacity, market volatility, and shifting business models. Tariffs complicate global trade, requiring resilience and adaptability in supply chains.
- Industry Transformation: New technologies, energy optimization, sustainability, and compliance with regulations are driving change in the Metals industry. Innovations like digital solutions and smart factories are transforming operations and improving efficiency.