The COVID-19 pandemic has negatively impacted the duplex stainless steel market. This is because due to the pandemic, the oil and gas industry is one of the worst-hit industries during COVID-19. Several global pipeline projects witnessed delays due to imposed lockdown restrictions in major countries like the United States, India, and others. According to a report by International Energy Agency (IEA), the oil demand in April declined by 25% and natural gas demand by around 4% which would constitute one of the largest contractions in the energy industry. Due to this, many oil and gas companies got negatively impacted. For instance, Prime Exploration & Production Limited (PEPL), Nigerian based Oil and Gas Companys total capital expenditure in 2020 fell by 41% as compared to 2019. This reduction included the halt of infilling and drilling activities related to Preowei oil field development project due to the covid 19 crisis. Due to such oil and gas project halt during covid, which involves halt in projects of the pipeline, exploratory wells, there was less demand for ferrous alloys like duplex stainless steel which negatively impacted the duplex stainless steel market.
Duplex stainless steel Market Segment Analysis By Product Type
By product type, Super Duplex Stainless Steel is expected to account for the largest share in the global market in 2021 and is expected to grow by over 3% during the forecast period. This is because super duplex stainless steel alloys with a combination of austenite and ferrite and hence are twice the strength of conventional austenitic stainless steels. They show excellent resistance towards salt-induced corrosion, pitting, and cracking. Owing to these excellent resistant properties, super duplex stainless steel (SDSS) is an excellent material to be used in production tubing in oil and gas wells and subsea pipelines used to transport corrosive oil and gases. The upcoming oil and gas projects which involve the construction of oil wells, platforms will increase the demand for duplex stainless steel. For instance, the Shwe gas field project in Myanmar has started with phases 2 and phase 3 of development. This phase will involve drilling a total of eight wells in the Shwe and Shwe Phyu gas fields and is due to be completed in 2022. Phase 3 of the project involves the construction and installation of a gas compression platform and is projected to be completed by 2024. Thus, such huge oil and gas upcoming projects involving equipment construction like oil wells, platforms in upcoming years will increase the growth of the duplex stainless steel market.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=505577
Report Price: $ 4500 (Single User License)
Duplex stainless steel Market Segment Analysis By End-Use Industry
By end-use industry, the oil and gas industry is expected to account for the largest share in the global market in 2021 and is expected to grow by over 3.5% during the forecast period. This is because of the increase in oil and gas projects in the forecast period. Due to their excellent properties of high corrosion resistance, duplex stainless steel can withstand highly corrosive environments and high pressures, making it widely used in oil and gas exploration activities. According to Yantai LNG, the phase II of the Yantai terminal project in China will be completed by 2025. The project involves a 329 miles (530 kilometers), 48- inch pipeline to deliver gas to other city networks across Shandong province. This project will also consist of five 200,000 cubic-meter storage tanks and two more LNG berths receiving up to 266,000 cubic-meter carriers expanding its capacity. Owing to such an upcoming huge upcoming oil and gas projects, which will involve new pipeline and storage tank construction and thus there will be an increase in demand for the duplex stainless steel market.
Duplex stainless steel Market Segment Analysis By Geography
The Asia Pacific is the largest and the fastest-growing region in the duplex stainless steel market in the year 2021 is expected to grow by over 5% during the forecast period. This is because of the increase in oil and gas projects upcoming in countries like China, India, Australia, Korea, and others which will boost the demand for duplex stainless steels for oil and gas equipment like pipelines and tubings due to their excellent corrosion resistance properties. For instance, The Amadeus Basin to Moomba Gas Pipeline (AMGP), Australia is one of the key oil pipeline projects with a pipeline constructed length of 590 miles, up to 16-inch in diameter with a free-flow capacity of 124TJ per day. Additionally, the Barossa gas field project in northern Australia is presently under construction stage involving six subsea production wells, in-field facilities, and a gas export pipeline tied into the Bayu-Undan to Darwin pipeline system that supplies gas to Darwin LNG. Owing to such huge projects involving, the construction of gas pipelines, production wells, and other equipment will involve more risk to corrosion and thus increase demand for the duplex stainless steel market.
Duplex stainless steel Market Drivers
An increase in oil and gas construction projects in the forecast period is driving the demand for the duplex stainless steel market
There has been a significant increase in construction projects upcoming in the oil and gas industry which will create a demand for duplex stainless steel due to their high corrosion resistance properties. For instance, China also plans to boost exports from Turkmenistan through the 1,000-km Central AsiaChina gas pipeline Line D, which is scheduled for completion in 2022. Additionally, the Nam Con Son 2 gas pipeline project in Vietnam is an ongoing pipeline project which involves the construction of a 202 miles offshore gas pipeline and around 24 miles of onshore gas pipelines to recover and transport gas from gas fields located within Vietnam. Owing to such huge upcoming oil and gas projects involving the construction of oil and gas onshore and offshore pipelines, there will be an increased risk of corrosion which will increase the demand for duplex stainless steel market in the forecast period.
An increase in bridge construction projects will drive the market growth of the duplex stainless steel market
There is an increase in bridge construction projects which will drive the market growth of the duplex stainless steel market. Lean duplex grades are mainly used in the building and construction industry for bridges or tie bars. For instance, the Zhuhai-Macau bridge in Hong Kong, Zhuhai, is a part of a 31 mile long series of three cable-stayed bridges, around the 4-mile undersea tunnel, and 3 artificial islands. Over 10000 tons of duplex stainless steel were used in the bridge construction. An increase in the construction of bridges that uses duplex stainless steel material will increase the demand for the duplex stainless steel market in the forecast period.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=505577
Duplex stainless steel Market Challenges
The development of super martensitic stainless steel can be a challenge to the duplex stainless steel market
The use of super martensitic stainless steel is increasing which is now becoming an alternative to duplex stainless steel. The super martensitic stainless steels show higher strength than duplex stainless steel, typically 80 times or above, and very good corrosion resistance in brines containing carbon dioxide (CO2). These steels contain chromium typically between 10-13%Cr, carbon contents of the order of 0.01%, and nickel addition in the range of 1-6% to stabilize the martensitic microstructures. This low carbon content and high nickel content ensure that the heat-affected zone is made fully martensitic with good toughness. Due to different alloying and processing requirements, compared with 22%Cr duplex stainless steels, these super martensitic steels are substantially cheaper than the competing duplex grades for pipeline and flowline applications requiring resistance to CO2 with low levels of H2S.
Duplex stainless steel Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies that are adopted by the dominant players in this market. Duplex stainless steel top 10 companies include:
Daido Steel Co. Ltd.
AK Steel Corporation
Sandvik Materials Technology AB.
In April 2021, Daido Steel Co. Ltd. signed an agreement to acquire TimkenSteel Corp., a leader in customized alloy steel products and services, with the intent to sell TimkenSteel (Shanghai) Corporation Limited, their subsidiary in China for approximately US$7 million in cash. This will broaden the duplex stainless steel products of daido steel co ltd.
In March 2020, Acerinox formalizes the acquisition of VDM metals, a global leader in the manufacture of special alloys which has enabled Acerinox to diversify access to new applications with greater value in industries, such as the aerospace, chemical, automotive and electronic, hydrocarbon, industrial emissions control, water treatment, and purification and renewable energy industries.
The growth of oil and gas industry projects in the Asia-Pacific region will drive the market. This is because there will be a demand for high-grade ferrous alloys like duplex stainless steel to be used in pipelines, tubings, exploratory wells, and others which will drive the decorative laminates market.
The increasing growth of bridge construction projects which require highly durable steel materials like duplex stainless steel will drive the demand of the market.
The growth of super duplex stainless steel due to an increase in pipeline and other oil and gas construction will drive the duplex stainless steel market.
Stainless Steel Forgings Market
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to firstname.lastname@example.org to discuss more about our consulting services.