ALLOY STEEL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

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Dominating Region- Asia Pacific

Asia Pacific is projected to lead this market in 2024, with an estimated market share of 42.5%, driven by its strong automotive and machinery sectors. Home to major manufacturers, the region benefits from high demand for alloy steel. Strict regulatory standards such as International Organization for Standardization (ISO) further ensure superior product quality, reinforcing its dominance in the global market.

Fastest-Growing Region- North America

North America region exhibits the fastest growth in this market due to rapid industrialization and infrastructure development across developing economies such as U.S. & Canada. Strong government support through policies such as American Society for Testing and Materials (ASTM) and investments promotes the growth of end-use sectors. Large consumer base and emerging middle-class boosts the demand for finished goods made from alloy steel.

Alloy Steel Market Outlook for Key Countries

Balancing Trade Policies and Demand- Insights into the U.S. Alloy Steel Market

The U.S. alloy steel market is influenced by trade policies such as tariffs, import quotas, and anti-dumping measures and domestic demand for alloy steel. Both major political parties in the country have supported increased tariffs on foreign steel imports to protect the domestic industry. However, these tariffs have raised prices for American purchasers and negatively impacted downstream manufacturers. The debate continues over balancing protectionist measures with the needs of domestic consumers and manufacturers.

China's Steel Exports Surge- Global Market Impacts and Trade Tensions

China, the world's largest steel producer, plays a pivotal role in shaping the alloy steel market. According to a July 2024 report by The Financial Times Ltd, China's steel exports are expected to surpass 100 million tonnes, marking their highest level in eight years. This surge is attributed to a decline in domestic demand. The increased exports have triggered a drop in global steel prices and heightened trade tensions, prompting several countries to impose tariffs or initiate anti-dumping investigations to counter the influx of Chinese steel.

India's Steel Industry- Growth Backed by Policy Support, But Imports Pose Challenges

India's market is witnessing strong growth due to low-cost manufacturing and policy support for the automotive and infrastructure sectors. However, the industry faces challenges from rising imports of cheaper steel, particularly from China. In response, Indian steelmakers have urged the government to impose higher tariffs on imports to protect domestic producers. For instance, according to a September 2024 report by Reuters, the Indian Steel Association has proposed increasing the customs duty on steel imports to 15% and introducing an additional 25% import tax.

Japan's Alloy Steel Industry- Sustaining Demand Amidst Rising Competition

Japan's alloy steel market is integral to its robust automotive and machinery sectors, driving substantial domestic demand. However, the industry faces significant challenges due to increased steel exports from China. In the first half of 2024, China's steel exports rose by 24% year-on-year, reaching 53.4 million tons, with projections suggesting they could surpass 100 million tons by year's end. For instance, according to data published by Reuters in August 2024, this influx has intensified competition and led to a 17% increase in Japan's steel imports during the April-June period, totaling 1.32 million metric tons, with imports from China surging by 43%.

Canada's Alloy Steel Industry- Tackling Oversupply and Strengthening Trade Ties

Canada's alloy steel market is significantly influenced by its trade relationships, particularly with the U.S. The country has faced challenges from global steel oversupply, notably from China, leading to increased competition and potential trade disputes. In response, Canada has implemented measures to protect its domestic industry, including imposing tariffs and conducting anti-dumping investigations to address the influx of cheaper steel imports. For instance, according to the Canada Government, in August 2024, Canada announced a 25% surtax on steel and aluminum imports from China, effective October 15, 2024. This measure aims to protect Canadian industries from unfair competition due to China's overcapacity and subsidization practices.