RALEIGH, North Carolina, Oct. 10, 2019 /PRNewswire/ -- The global market for stainless steel is expected to grow at a CAGR of 3 percent, with the production continuing to be higher than the consumption, according to Beroe Inc., a procurement intelligence firm. The market is driven by increasing demand from multiple downstream industries, and technological advancements in the field.

Asia would continue to dominate the stainless steel market with the highest growth in the next few years further boosted by the large number of manufacturers in China, India, and Japan, and demand from chemical/petrochemical and energy, consumer goods and medical, and automotive and heavy transport industries. While consumption in the Americas and EMEA regions has grown slower, the growing construction sector in France, Germany, and the UK is expected to fuel demand over the forecast period.

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

Increasing demand from downstream industries, such as agriculture, processing industry, consumer products, construction industry, is expected to be the primary driver of the stainless steel industry. Increased focus on reducing the total ownership cost of the stainless steel-making process and attain lower cycle times has led to the adoption of newer technologies, further driving the growth of the market. Lower Profit Margins pose a challenge to the market as suppliers are susceptible to commodity price fluctuations, against which they cannot hedge, due to the relatively smaller period of contracts. Steel, its raw materials and its products have high logistics costs, lowering profit margins further.

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Globally, the growth is shifting from traditional consumers of stainless steel (consumer goods, architecture, construction, etc.) to extensive use of stainless steel by auto, railway, transportation, building, and construction sector. Stainless steel market, which was dominated by cookware & durables, at present, constitute only 50% consumption with the addition of process industry, automobile, railways, and transportation joining the league.

The buyer's ability to use substitute materials/services is medium. For instance, Grade 304, 316 and 416 are the alternative grades for Grade 303, mainly due to better corrosion resistance, formability, and high machinability but the price difference between the materials makes substitution difficult. For instance, in the US, Grade 304 stainless steel is priced around 3,136 $/MT, whereas Grade 316 stainless steel is price around 4,018 $/MT.

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

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