Steel Fabrication Industry. Commercial Metal Fabrication. Profitable Business Ideas in Steel Industry
Steel Fabrication is the process involved in shaping, cutting and assembling components which are designed with steel. Industries in the fabricated steel sector transform steel into intermediate or end products, other than machinery, metal furniture, or treat metals and metal formed products fabricated elsewhere. Important fabricated steel processes are forging, stamping, bending, forming, and machining, used to shape individual pieces of the metal; and other processes, such as welding and assembling, used to join separate parts together.
Here are more of Steel’s Major Benefits:
- Strength and Durability
Steel is used frequently in commercial buildings, partly due to its ability to withstand the wear and tear of weather conditions. It’s stronger than most other building materials, including concrete. Another benefit is that steel has a long lifespan and often comes with a warranty.
- Constructability
Structural steel buildings can be constructed easily and at a rapid pace. Steel frames for buildings can be erected in no time. Construction projects usually cause disruption to nearby buildings and roads. Speedy construction reduces this and also leads to savings in site preliminaries.
- Steel can be easily fabricated and produced massively. Steel sections can be produced off-site at shop floors and then assembled onsite. This saves time and increases the efficiency of the overall construction process.
- Structural steel is very flexible. Structural steel is relatively cheap compared to other building materials. It is very durable. Structural steel structures can withstand external pressures such as earthquakes, thunderstorms, and cyclones. A well-built steel structure can last up to 30 years if maintained well.
Market Outlook
The Steel fabrication market can be segmented based on type and end-use industry. Austenitic stainless steel, super-austenitic stainless steel, ferritic stainless steel, martensitic stainless steel, and duplex stainless steel are the different types of stainless steel. The different types of stainless steel fabrication market are classified based upon their crystalline structure. Austenitic stainless steel products are widely used as compared to other stainless steel. It comprises austenitic crystalline structure, which exhibits a face-centered cubic crystalline structure. Super-austenitic stainless steel contains high amount of molybdenum, nitrogen additions, and nickel. It reduces the sensitization effect caused by high temperatures.
The global structural steel fabrication market, in terms of revenue, was valued at US$ 132.17 Bn in 2017. It is projected to expand at a CAGR of 4.24% during the period 2018 to 2026. Expansion of construction and automobile sectors across the globe and increase in number of manufacturing plants are key factors driving the structural steel fabrication market.
Structural Steel Fabrication Market Value, By Region, 2018 (US$ Bn)
The use of structural steel fabrication is not just restricted to the constructions sector, and several other industries have also emerged as prominent end-users. The automotive sector has become a key user of structural steel in recent times, and this factor has given a strong impetus to the growth of the global structural steel fabrication market. Furthermore, the presence of a seamless energy sector is also a key driver of demand within the global market for structural steel fabrication. There is a strong possibility of new end-user industries for structural steel fabrication originating in the global market.
Global Structural Steel Fabrication Market by End-use Industry:
- Construction
- Automotive
- Manufacturing
- Energy & Power
- Electronics
Key Manufacturers of Global Market by CAGR Analysis: O’Neal Manufacturing Service, BTD Manufacturing Inc., Kapco Inc., Mayville Engineering Company, Inc., Watson Engineering Inc., Defiance Metal Products, Standard Iron & Wire Works Inc., Ironform Corporation, EVS Metal, LancerFab Tech Pvt. Ltd., Interplex Holdings Pte. Ltd
Indian Steel Industry
Steel fabrication industry in India has come a long way over the last few years from a remote traditional welding of some structures to the manufacture of complete designed and innovative sheet metal for diverse direct applications. Technological up-gradation in this sector has not only helped industry reduce delivery time but also the leak proof and accurate designing of the structure.
In fact, fabrication industry which was considered until recently as the perennial business with new generations automatically passed on to from the previous one, has seen many new players entering into this segment with automated machines for various applications. Interestingly, many highly qualified engineers and trained technicians have become entrepreneurs with own set of manufacturing unit which over the years have generated huge interest of next generations. Fabrication shops and machine shops have overlapping capabilities, but fabrication shops generally concentrate on metal preparation and assembly as described above. By comparison, machine shops also cut metal, but they are more concerned with the machining of parts on machine tools.
The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for continuous modernization and up-gradation of older plants and higher energy efficiency levels.
Indian steel industries are classified into three categories such as major producers, main producers and secondary producers.
India will be the brightest spot for the steel sector over the next 12-18 months. India’s steel consumption is rising at least 5.5 per cent to 6 per cent every year, tracking strong GDP growth of 7.3 per cent to 7.5 per cent.
Major Steel Producing Countries in the World in 2017:
The top 10 Steel producing countries (including EU) accounted for 91.1 percent of global steel production in 2017
India was also a net exporter of steel in FY18. Exports and imports of finished steel stood at 5.15 MT and 6.55 MT respectively, during April 2018-January 2019 (P). Steel consumption is expected to grow 7.5 per cent year-on-year to 95.4 MT in 2018. India’s steel production is expected to increase from 103.13 MT in FY18 to 128.6 MT by 2021.
The continued growth in GDP in India, in fact, indicates that major steel consuming segments such as construction, real estate/housing, capital goods/machinery, consumer goods, automobiles and energy sector shall benefit. The housing and construction sector, where major chunk of steel is consumed.
Market value of the Indian Steel Sector (US$ Billion)
Major Key Players of the Industry:
- Tata Steel Ltd.
- SAIL
- JSW Steel Ltd.
- Jindal Steel and Power Ltd.
- Ispat Industries Ltd.
- Welspun-Gujarat Stahl Rohren Ltd.
- Bhushan Steel Ltd.
- Visa Steel Ltd.
Cost Estimation:
Plant & Machinery (P & M): 47 Lakhs
Cost of Project: 158 Lakhs
Return of Return (ROR): 41.00%
Break Even Point (BEP): 64.00%
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