Market Trends of High Speed Steel Cutting Tools Industry
This section covers the major market trends shaping the High Speed Steel Cutting Tools Market according to our research experts:
Positive Outlook for the Automotive Industry
The major factor boosting the growth of HSS cutting tools is the increasing demand from the automotive industry. HSS cutting tools dominate the automotive industry and are used for milling, grinding, and broaching automotive car parts. HSS cutting tools provide an efficient and economical option to increase overall productivity, owing to their high precision, durability, and repeatability during manufacturing operations.
Despite some headwinds, the automotive industry is looking bright globally. U.S. light-vehicle retail sales peaked in 2021 at 14.9 million units. According to industry sources, global light vehicle production units have seen remarkable growth and continue to do so.
APAC is expected to register the highest growth rates in production volumes, followed by North America. This scenario is expected to create demand for cutting tools and other equipment associated with the manufacturing process.
Higher Demand for Steel from the APAC Region is Driving the Steel Cutting Tools Market
The World Steel Association forecasts steel demand to edge up 0.4% in 2022 to 1.84 billion mt and grow a further 2.2% in 2023 to 1.88 billion mt. In the developed nations of the world, steel demand is expected to increase by a lower 1.1% in 2022 and 2.4% in 2023, after rising 16.5% in 2021. Steelmakers around the world are increasing capacity through large capital investments to meet the high demand.
Steel demand in India is expected to rise from 100 MTPA in 2020 to 230 MTPA in 2030-31, according to industry experts. For example, In India, JSW Steel spent Rs. 280 billion (USD 3.7 billion) to increase its steelmaking capacity from 24.5 MTPA in March 2021 to 36.5 MTPA in March 2024. Tata Steel announced an investment of Rs. 80 billion (USD 1.1 billion) toward the completion of the Kalinganagar plant expansion, which will increase capacity to 8 MTPA from 3 MTPA, as well as the expansion of the mining operations and recycling business. SAIL, too, is nearing the end of an Rs. 700 billion (USD 9.3 billion) modernization and expansion program that will increase its capacity to 21.4 MTPA.
China has built up massive iron and steel production capacity and is now the world's largest steel producer, with annual crude steel production volume exceeding one billion metric tons for the past two years in a row. Although China consumes the majority of the steel produced, exports are also important for Chinese steelmakers.
Japan is also one of the world's largest steel producers, with domestic industries such as construction and automotive manufacturing consuming a large portion of the output. Steel remains indispensable in Japan. It is the world's second-largest steel exporter, despite relying on price-driving iron ore and coking coal imports.
