SB Special Insight – Global Steel Demand by Sector (2024)

This sector-wise breakdown reveals where the 1793 Mt global steel demand is concentrated, helping you align strategy with market priorities.

Sector-Wise Steel Demand Breakdown:

Sector    2024 Demand (Mt)    % Share
Construction    877    49%
Mechanical Engineering    290    16%
Automotive    134    8%
Other Transport    63    4%
Domestic Appliances    61    3%
Metal Products    204    11%
Oil & Gas    113    6%
Defence    16    1%
Miscellaneous    34    2%

 
🧠 Industry Insight & Strategic Takeaways:

🏗️ 1. Construction (49%)

Dominates global demand with urbanization, housing, infrastructure, and commercial real estate projects.

Key steel products: TMT bars, structural beams, pipes, and galvanized coils.

 SteelBazaar Suggestion:
Launch category-specific storefronts (like “Infra Steel Hub”), bundle project-ready steel SKUs, and provide live quote functionality for EPC contractors.

 2. Mechanical Engineering (16%)

Strong demand from HVAC, elevators, manufacturing machines, and energy systems.

Requires precision and certified steel grades (HR, CR, special alloys).

 SteelBazaar Suggestion:
Enable SB SmartTrade filters by grade and thickness. Create a lead-routing module that connects OEMs with certified suppliers through SB LeadX.

 3. Automotive (8%)

Growth driven by EV transition, lightweighting, and global auto production recovery.

Demand for CR, galvanized, high-strength steel.

 SteelBazaar Suggestion:
Promote on-platform auto-grade-certified steel, with traceability and mill test certifications. Allow OEMs to post technical RFQs directly via SB Vendor Desk.

 4. Other Transport (4%)

Covers railways, shipping, heavy vehicles—capital-intensive and schedule-sensitive.

Prioritizes long products like rails, plates, and forged sections.

 SteelBazaar Suggestion:
Use SB SmartQuote to enable milestone-based bidding (ideal for phased delivery projects). Allow state-owned enterprises and PSUs to run tenders via SB Infra Connect.

 5. Domestic Appliances (3%)

Stable yet growing segment; needs aesthetic, corrosion-resistant flat products.

High volume, low margin—requires precise pricing and packaging.

 SteelBazaar Suggestion:
Use auto-reorder logic for appliance manufacturers to maintain just-in-time inventory with custom packaging needs. Enable branding and bulk discount support.

 6. Metal Products (11%)

Broad category: wire, fasteners, containers, furniture, fencing, and fabrication.

Demand is highly fragmented and distributed across SMEs.

 SteelBazaar Suggestion:
Deploy SB MicroProcure—a procurement tool for micro manufacturers to find price-optimized small lots. Recommend bulk conversion deals to encourage standardized sourcing.

 7. Oil & Gas (6%)

Relies on seamless pipes, high-pressure-grade plates, corrosion-resistant steel.

Often project-based and requires approvals and QA.

 SteelBazaar Suggestion:
Provide QA-compliant sourcing bundles integrated with documentation tools. Highlight vendors with API/ISO certifications on profiles.

 8. Defence (1%)

Niche segment; uses high-grade, ballistic-resistant, naval-grade steel.

Long procurement cycles, stringent compliance.

 SteelBazaar Suggestion:
Use SB GovTrade interface to simplify onboarding and vendor visibility for government contracts. Allow onboarding of DRDO/DPSU-approved suppliers.

Summary:

Steel demand is evolving from just volume to value + velocity. Segments like mechanical engineering and automotive demand tech integration and certification, while construction and infrastructure crave bulk fulfillment speed.

 SteelBazaar’s Role in 2024 and Beyond:

SteelBazaar is not just a marketplace—it is a supply intelligence engine that matches industrial steel demand with quality vendors through:

🔍 Verified supplier discovery
🧠 AI-led SmartTrade & SmartQuote
📦 Bundled steel solutions
💬 Instant RFQs & digital negotiation
📊 Sector-based insight dashboards