ELECTRICAL STEEL MARKET ANALYSIS

Market Challenges And Opportunities

Electric Steel Market: Restraints

Price fluctuations for raw materials

The raw materials needed to produce electrical steel are a major factor in steel costs. Iron ore, coal, ferroalloys, and a few industrial gases make up the bulk of the materials. However, because the prices of these raw materials are so unpredictable, there are significant swings in the price of steel and variances in the final cost. Steel prices are also impacted by changes in crude oil prices, storage space, and production costs. Therefore, it is projected that these issues would constrain market expansion.

Electrical Steel Market Report Coverage

Restraints & Challenges:

Price fluctuations for raw materials will prevent market expansion

Electric Steel Market: Market Opportunity

The upcoming regulations and government support in emerging economies such as India, China, and Brazil present a significant opportunity for the electrical steel market players. As the automotive industry in these countries continues to grow rapidly, the implementation of less stringent rules and regulations provides a favorable environment for market players to expand their operations. Furthermore, governments across the globe are emphasizing the reduction of carbon emissions from vehicles and supporting the use of electrical steel in various applications. For instance, investments in the manufacture of cleaner materials like steel, aluminium, and concrete, which can be used to create sustainable infrastructure, are part of the U.S. government's recent initiatives to encourage the growth and competitiveness of the American manufacturing industry. This creates a market for sustainable infrastructure that can drive the demand for electrical steel products, especially for electric vehicles, wind turbines, and solar farms. Therefore, governmental support and upcoming regulations present a significant opportunity for the electrical steel market to grow and expand its operations.

Electric Steel Market: Growth Drivers

High electrical steel consumption in motors and transformers

Due to the use of electrical steel in the automotive sector, the global market for electrical steel is being pushed by the rising demand for energy-efficient automobiles, notably electric and hybrid cars. Additionally, the need for transformers in the power sector is being driven by the rising requirement for energy conservation, which is advantageous for the industry. Electrical steel is an essential component in applications where electrical energy needs to be effectively transformed, transmitted, and utilized due to its high magnetic permeability. The power core from ThyssenKrupp, a grain-oriented electrical steel, is crucial in distribution and power transformers where it helps to convert and transform voltage.