Special steels becoming more and more special

The global specialty steel market is expected to grow from $234.85 billion (about 210 billion euros) in 2023 to $251.79 billion (more than 226 billion euros) in 2030, at a compound annual growth rate of 5 % over the forecast period, according to Exactitude Consultancy.
 

Source: Exactitude Consultancy www.exactitudeconsultancy.com

Within the steel industry as a whole, the special steels market is a subset defined by the manufacture and distribution of high-performance steel alloys customised to meet exacting specifications. Unlike standard carbon steels, special steels are alloyed with different elements such as nickel, manganese, chromium and other alloying elements to improve their mechanical characteristics, corrosion resistance and ability to withstand heat. This particular type of steel is used in many different industries, such as manufacturing, automotive, aerospace, energy and construction, where the need for customised steel solutions are driven by stringent performance requirements and different specifications.

The special steels market is characterised by its emphasis on creating alloys with remarkable properties, such as high tensile strength, hardness, toughness and fatigue and wear resistance. Because of these qualities, special steels are invaluable in demanding applications where conventional steels may not be sufficient. In addition, the market often caters to industries that need to be resistant to adverse circumstances such as high temperatures, corrosive environments or high pressure scenarios. Because special steels are so versatile, producers can alter their compositions to produce materials with the best qualities for particular end uses. The market for special steels is significantly determined by global market dynamics, which include factors such as economic conditions, industry trends and technological advances that affect supply and demand. To remain competitive and meet the changing needs of the industry, market participants, such as steel producers, distributors and end-users, closely monitor developments in materials science and manufacturing techniques.

Segmentation

The global specialty steel market is divided into three types, applications and regions. By Type it is divided into structural steel, tool and die steel, stainless steel, Others. Structural steel has the largest market share. Within the special steels market, structural steel is a basic category that is mainly used in engineering and construction applications. Structural steel is widely used in the construction of buildings, bridges and other infrastructure projects due to its exceptional strength, resilience and ability to withstand heavy loads. Its carefully considered composition provides the mechanical qualities necessary for structural integrity. Another important subset that meets the needs of the manufacturing and tooling industries is tool and die steel. These steels are perfect for manufacturing cutting tools, dies and moulds because of their remarkable hardness, wear resistance and toughness. Tool steel is widely used in precision machining and industrial tooling applications due to its ability to maintain sharp edges and withstand harsh environments.

By application it is divided into automotive industry, machinery manufacturing, petrochemical, power industry. In the automotive industry it has the largest market share. Special steels and alloys are widely used by the automotive industry, which uses them for a variety of automotive parts. For the production of parts such as engine parts, transmission systems, chassis components and other structural elements, lightweight, high-strength special steels are essential. The unique qualities of these steels help automobiles to perform better overall, more safely and with less fuel consumption. Special steels are essential for the production of tools, gears, bearings and other vital parts because they offer the necessary toughness, wear resistance and longevity. These alloys are essential to the machining industry because they ensure precision, durability and productivity during the manufacturing process. Special steels designed specifically for machine production increase the overall productivity and reliability of machinery in a variety of industries.

Special steels are used in the petrochemical industry to build infrastructure and equipment exposed to harsh chemical environments. These alloys are suitable for piping, pressure vessels and processing equipment due to their durability, high temperature stability and corrosion resistance. The durability and safety of petrochemical installations are enhanced by the resistance of special steels to hostile environments. Special steels are needed in the energy sector to build the parts that generate, transmit and distribute energy. High temperature resistance, strength and fatigue resistance are required for materials used in turbines, generators and other essential power plant components. The efficiency and reliability of power generation systems, particularly those used in renewable energy applications, are enhanced by special steels designed specifically for the energy sector.
 

Special steels market dynamics

The automotive sector is a major consumer of special steels, especially for components requiring high strength, durability and corrosion resistance. Crankshafts, camshafts and connecting rods are among the engine parts made from special steels. For these parts to survive the severe conditions found inside an engine, they must have high strength, wear resistance and durability. Special steels are advantageous for gears, shafts and other drivetrain parts. The exceptional strength and fatigue resistance of these steels play a key role in ensuring the reliability and efficiency of the transmission. Springs, shock absorbers and anti-roll bars are examples of suspension components made from special steels. These steels provide the necessary strength and flexibility to improve handling and ride comfort. Special steels are often used to manufacture chassis parts, such as frame rails, to ensure structural integrity, crashworthiness and overall vehicle safety. These steels form part of the rigidity and strength of the vehicle frame.

When building safety-related elements such as crash bars, pillars and door reinforcements, special steels are essential. These steels are selected to improve overall crash performance by absorbing and distributing energy during collisions. Exhaust manifolds and tailpipes, among other exhaust system components, benefit from the corrosion resistance of special steels. This extends the service life of these parts, particularly in environments where exposure to heat and corrosive substances is frequent. High-strength, low-weight special steels are used to manufacture body panels and structural parts. This improves vehicle performance, crash safety and fuel efficiency. Wheels and other wheel components are made from special steels that have the strength to support the weight of the vehicle.

Constraint

Economic downturns or uncertainties can affect industrial sectors, leading to reduced demand for special steels used in construction, manufacturing and other key industries.

Reduced construction activities, covering residential, commercial and infrastructure projects, are a common result of economic downturns. During economic downturns, demand for special steels for structural applications, reinforcement and other construction-related components may decrease as construction projects slow down or are delayed. In the manufacturing industry, special steels are widely used, particularly in the creation of tools, machinery and equipment. Because consumer demand is weaker during economic downturns, manufacturers may see a decline in orders and production levels. This subsequently influences the demand for special steels used in the production of different products. Special steels are widely used in the automotive industry, especially in the production of chassis, other vital parts and vehicle components.

The oil and gas industry uses special steels extensively in the manufacture of valves, pipes and other equipment. Global energy demand can be affected by economic uncertainty, which can cause swings in investment and exploration activity in the oil and gas industry. This in turn has an impact on the industry's need for special steels. Special steels are used in the aerospace industry to produce engines, structural parts and aircraft components. Economic downturns may lead to a decrease in air travel, which will affect aerospace industry production and, in turn, the demand for special steels in this industry. In addition, the manufacture of many consumer goods, including electronic products and household appliances, requires the use of special steels.
 

Special steels market trends

Producers are expected to use cutting-edge technologies to improve the qualities of special steels, making them more efficient, lighter and stronger for a variety of uses.

The automotive industry is seeing a growing trend towards lightweight materials as environmental sustainability and fuel efficiency become more important considerations. Manufacturers are likely to want to use special steels with exceptional strength and reduced weight when producing parts such as body structures, suspension systems and chassis.

Due to the growing need for materials with high strength, heat resistance and corrosion resistance, the aerospace industry is expected to have an increased demand for special steels. Specialty steel will become even more important as the aerospace industry grows and more aircraft components are produced.

The COVID-19 pandemic drew attention to weaknesses in international supply chains. As a result, a trend to improve supply chain resilience may emerge, as suppliers and manufacturers seek more diversified and localised sources of speciality steel to reduce risks.

Sustainability concerns and environmental regulations are likely to have an impact on the speciality steel market. The development of environmentally friendly speciality steel products may be driven by increasing pressure on manufacturers to use environmentally friendly materials and production techniques.

The production of special and customised alloys is expected to be driven by the growing demand for specialised applications. Industries with specific needs, such as electronics, healthcare and defence, may require customised steel formulations.

Circularity and green hydrogen

SSAB, a leader in special steels for the automotive industry, is completely transforming its steel production processes. ‘We will gradually close all our blast furnaces and introduce electric arc furnaces. The raw material for steel production will be scrap or direct-reduced iron pellets that are reduced with 100 % green hydrogen (the Hybrit process). SSAB will also build two completely new steel plants that will be based on the mini-mill concept with direct rolling after slab production. This will improve efficiency and energy consumption/sustainability. On the product side, SSAB is focusing on advanced high-strength steels with improved properties for energy and material efficiency,’ explains Asier Inchaurbe, SSAB Country Manager for Iberia.

Inchaurbe comments that ‘SSAB is constantly improving the properties of steel grades, so that steel properties and manufacturing methods can be improved, e.g. strength levels, ductility, formability, fatigue, cost, etc. The next challenges for the automotive industry are the commitment to become carbon neutral. In order not to make a large allocation or offset, OEMs need materials with the lowest possible carbon footprint. Steel and low-emission steels are well positioned in this competition against other materials’.

He says: ‘Many customers are demanding circularity and a reduction in the amount of scrap in steel (and other materials). Given that steel (and aluminium) consumption has increased dramatically over the last 20 years and that both materials have a long average lifetime (50-70 years for steel and 40-60 years for aluminium), the market suffers from a shortage of recycled materials. Even if 85-95% of all end-of-life steel is recycled into new steel, this is and will be a challenge for the current and medium-term outlook’.

SSAB works in all those sectors that use steel as a raw material; from construction and infrastructure to automobiles and heavy vehicles. ‘There are several synergies in terms of material properties, but also in terms of shared customer expectations. The main issue at the moment is the ecological transformation to reduce or eliminate embodied emissions,’ concludes Asier Inchaurbe.

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Report published in AutoRevista 2.395