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  • Published On : Nov 2022
  • Code : CMI5368
  • Industry : Advanced Materials
  • Pages : 154
  • Formats :

Free machining steel is high carbon steel that have sulfur, lead, bismuth, selenium, tellurium, or phosphorous added. Sulfur forms the compound manganese sulfide, which is soft and acts as a chip-breaking discontinuity. It also acts as a dry lubricants to prevent a built up edge on cutting tool. These steels are soft, malleable, ductile and magnetic in nature.

The global free machining steel market is estimated to surpass 8,353.2 KT by the end of 2030 in terms of volume, exhibiting a CAGR of 2.1% during the forecast period (2022 to 2030).

Drivers

One of the key factors expected to stimulate market growth during the forecast period is the multiple applications of free machining steel in electronics industry. Free machining steel is widely used in the electronics industry for the manufacturing of various products such as electrical wires, control panels, switchgears, engine parts for automotive, ships, and planes. Free machining steel is used for manufacturing of industrial control panels.  Industrial control panels are used in various end use applications such as operation of motors and drives, security systems, heating, ventilation, air conditioning, production, assembly and conveyance.

Another factor which is driving the market for the free machining steel is the growing demand for the anti-lock braking system (ABS) in the automotive industry. Anti-lock braking system (ABS) is an advanced active braking system used in automobiles, which helps drivers to control their vehicles. Anti-lock braking systems improves vehicle control and reduces the chances of collision on both dry and slippery surfaces. The growth in the demand for safety features, technological advancements in automotive industry, and increase in government mandates for vehicle safety drive the growth of the anti-lock braking system market and it enhanced the demand for the free machining steel.

Among regions, Asia Pacific held dominant position in the global free machining steel market in 2021, accounting for 64.3% market share in terms of volume, followed by North America and Europe. The growth of the electronics industry in this Asia Pacific region is driving the growth of the free machining steel market in this region. For instance, according to India Brand Equity Foundation report in June 2022, India has grown its domestic electronics production from US$ 29 billion in financial year 2014-15 to US$ 67 billion in 2020-21. The electronics sector of India contributes around 3.4% of the country's Gross Domestic Product (GDP). The growing demand for the free machining steel for the production of the electronics is benefiting the growth of the market in this region.

Figure 1. Global Free Machining Steel Market Revenue Share (%), By Region, 2021

Free Machining Steel  | Coherent Market Insights

Market Restraints

Free-machining steels with sulphur and phosphorus have relatively poor weldability because cracks can form during the final stages of weld solidification. The cracks arise from the presence of liquid magnesium sulphate and phosphorous compounds at the weld metal grain boundaries which is restraining the global free machining steel market. Moreover, the high ductility of the free machining steel leads to reduction of the impact resistance which is a restraint for the global free-machining steel market.

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Free Machining Steel Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: 6,914.6 KT
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 2.1% 2030 Value Projection: 8,353.2 KT
Geographies covered:
  • Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:
  • By Type: Sulfur Free Cutting Steel, Lead Free Cutting Steel, Calcium free Cutting Steel, Others (Rephosphorized Free Cutting Steel, etc.)
  • By Application: Lathe Processing, Electronics Industry, Automotive, Others (Office Equipments, Household Appliances, etc.)
Companies covered:

Daido Steel, Hitachi Metals, Saarstahl AG, Akiyama Seiko, China BaoWu Steel Group Corporation Limited, Valin Group, Shougang Group, Kobe Steel, HBIS Group, Huaigang Special Steel, JFE Steel Corporation, POSCO

Growth Drivers:
  • Growing demand of free machining steel from automobile industry
  • Multiple applications of Free Machining Steel in Electronics industry 
Restraints & Challenges:
  • Wide availability of substitutes of free machining Steel 

Market Trends

Free machining steel are used in the manufacturing of household appliances such as stoves, refrigerators, washing machines and dishwashers. Free machining steel comes with various properties such as high strength, ease of manufacturing and low environment effects which are important for the manufacturing of the household appliances. Austenitic stainless steels are generally difficult to use, and this has led to the development of the free-machining Grade 303. The chromium, nickel, and sulphur contents of Type 303 are slightly different than that of Type 304, but its physical and mechanical properties are quite similar. Additionally, steel has a rather high strength to weight ratio compared to other types of metals, which enables the manufacturing of small yet strong steel parts for the household appliances.

Figure 2. Global Free Machining Steel Market Revenue Share (%), By Application, 2021

Free Machining Steel  | Coherent Market Insights

On the basis of Applications, in 2021, lathe processing segment held largest volume share of 54.2% in global free machining steel market.

Global Free Machining Steel Market - Impact of Coronavirus (Covid-19) Pandemic

Slowdown of the electronics and automobile industry in the covid-19 pandemic affected the global free machining steel market. The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the electronic products manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by government’s globally.COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. However, electronics industry is regaining its market strength due to the increasing demand of the electronics industry which will further help to grow the free machining steel market.

Competitive Section

Key players operating in the global free machining steel market include Daido Steel, Hitachi Metals, Saarstahl AG, Akiyama Seiko, China BaoWu Steel Group Corporation Limited, Valin Group, Shougang Group, Kobe Steel, HBIS Group, Huaigang Special Steel, JFE Steel Corporation, POSCO.

Free cutting steels also known as free machining steels are those steels which form small chips when machined. This increases the machinability of the material by breaking the chips into small pieces, thus avoiding their entanglement in the machinery. This enables automatic run of the equipment without human interaction. Free cutting steels with lead also allow for higher machining rates. As a thumb rule, free cutting steel normally costs 15 % to 20 % more than the standard steel. However this is made up by increased machining speeds, larger cuts, and longer tool life. 

Market Dynamics:

For instance, according to the American Iron and Steel (AIS) in September 2022,  provision requires (United States Department of Agriculture) USDA Rural Utilities Service (RUS) Water and Environmental Programs (WEP) assistance recipients to use iron and steel products that are produced in the U.S. Moreover, the household appliances that are used to process food items mostly have to be food grade as they comes in contact with the food items regularly. For instance, according to Section 409(h)(2)(C) of the Federal Food, Drug, and Cosmetic Act (the Act) in January 2022,  states that an FCN is effective for the manufacturer, the Food Contact Substance (FCS), and the conditions of use identified in the notification and not effective for a similar or identical substance produced or prepared by a manufacturer other than a manufacturer identified in the prior notification. FCNs are proprietary to the manufacturer for which the notification is effective, therefore, the FCS must be obtained from that manufacturer.

In the field of home appliances, free machining steel is used abundantly for exteriors, chasses, panels, and motor parts, etc. free machining steel accounts for large proportions of the materials used in home appliances, although, its use has somewhat decreased since recycling began in earnest. Free machining steel, which is an abundantly available low-cost material has long been employed for home appliances because of its strength and formability. The use of surface-treated steel sheet having better corrosion resistance (longer life) and aesthetic appeal has been increasing. Surface-treated steel sheet has been subjected to plating, conversion coating or painting to impart good corrosion resistance to the steel sheet. For indoor home appliances, electro-galvanized steel sheet with a coating weight of 20 g/m2 is normally used. The purpose of this is to restrain red rust on steel by taking advantage of the preferential corrosion (sacrificial protection) of zinc under general conditions.

Key features of the study:

  • This report provides an in-depth analysis of global free machining steel market, and provides market size (US$ Million and Tons) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global free machining steel market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include Daido Steel, Hitachi Metals, Saarstahl AG, Akiyama Seiko, China BaoWu Steel Group Corporation Limited, Valin Group, Shougang Group, Kobe Steel, HBIS Group, Huaigang Special Steel, JFE Steel Corporation, POSCO
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global free machining steel market report caters to various stakeholders in this industry including investors, suppliers, extruded aluminum profiles manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global free machining steel market

Detailed Segmentation:

  • Global Free Machining Steel Market, By Type:
    • Sulfur Free Machining Steel
    • Lead Free Machining Steel
    • Calcium Free Machining Steel
    • Others (Rephosphorized Free Cutting Steel, etc.)
  • Global Free Machining Steel Market, By Application:
    • Lathe Processing
    • Electronics Industry
    • Automotive
    • Others (Office equipment, Household Appliances, etc.)
  • Global Free Machining Steel Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By Country:
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East & Africa
      • By Country/Region:
        • Middle East
        • Africa
  • Company Profiles
    • Daido Steel*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Hitachi Metals
    • Saarstahl AG
    • Akiyama Seiko
    • China BaoWu Steel Group Corporation Limited
    • Valin Group
    • Shougang Group
    • Kobe Steel
    • HBIS Group
    • Huaigang Special Steel
    • JFE Steel Corporation
    • POSCO

 “*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

The global free machining steel market is estimated to surpass 8,353.2 KT by 2030 and is expected to exhibit a CAGR of 2.1% between 2022 and 2030.
Growth of the electronics industry globally, and multiple applications of free machining steel in electronics industry are projected to propel the market during the forecast period.
Free machining steel is widely used for the manufacturing of the household appliances which is a key trend in the market.
Free-machining steels with sulphur and phosphorus have relatively poor weldability because cracks can form during the final stages of weld solidification which is a key restraint for the market.
Major players operating in the steel market include Daido Steel, Hitachi Metals, Saarstahl AG, Akiyama Seiko, China BaoWu Steel Group Corporation Limited, Valin Group, Shougang Group, Kobe Steel, HBIS Group, Huaigang Special Steel, JFE Steel Corporation, POSCO.
The market is estimated to be pegged at 6,914.6 KT in terms of volume in 2021.

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