Stainless Steel World Americas April 2025 | Page 14

Market Report

The Air, Water, Energy- Stainless Market

Eighty years ago, the market for stainless steel in air, water, and energy applications were easy to segment. U. S., European, and Japanese companies were the producers and mostly served a market of developed nations. The amount of information available for steel selection was a fraction of one percent of what is available today. The situation today is much more complex. India is predicted to be the largest economy in 2050, surpassing China. The U. S. will be in third place and falling. Thanks to performance monitoring, the value of a particular grade of stainless can be documented in detail. Today, market predictions and technical analysis are complex but can be very accurate with the following approach.
By Robert McIlvaine, President and Founder – The McIlvaine Company
Loss of Existing Markets
Air, water, and energy applications can be divided into industrial, commercial, and other. This use can be divided into process and discrete. The total market for the unfinished steel is over USD $ 100 billion per year. The amount used in air, water, and energy products is over USD $ 20 billion per year. Since stainless steel makes up less than five percent of the selling price, the value of stainless products is over USD $ 400 billion per year. Industrial process applications account for roughly USD $ 100 billion dollars per year of stainless products. Much of this is austenitic and divided between 316 and 304.
Hubs The industrial process market can first be divided into Indian, Chinese, and Developed Country Hubs. The developed countries are presently in the lead with the Chinese Hub in second place. However, by 2050, the Indian Hub, including developing Asia and
Steel Market
Africa, will be in the lead. The markets are first determined based on Volume Adjusted Revenue( VAR). The forecast is reduced by the difference between VAR and actual revenues. Many of the stainless products in the Indian Hub are manufactured in India
and shipped to other countries in the Hub, such as developing Asia and Africa.
Products The next segmentation is by-products such as valves, pumps, filters, centrifuges, storage tanks, etc. The network segmentation is equally important. The network includes the component suppliers for a specific application. The selection of duplex 2205 stainless in a Flue-gas desulfurization( FGD) system depends on the reagent used. If limestone is used, C276 Hastelloy is generally preferred. The best selection of stainless materials for the vessel will in part be the same as for the pumps, valves, and piping associated with it.
works of products with similar stainless steel value propositions. These suppliers of the primary process equipment typically include complete systems with the full network of components. In most cases the supplier of the primary equipment buys their components. In the case where a network includes primary and secondary systems, there are many suppliers involved. One exception is a few companies, such as Andritz, which are network focused rather than product focused. For example, for a power plant, Andritz will supply the boiler, heat exchangers and pollution control systems. KSB, with large pump revenues, was dissatisfied with the valve divisions serving a relatively small niche. Andritz was looking to add valves for certain networks and made the purchase from KSB.
The wisdom of the best selection is found in the network of products. In the case of Hastelloy for the vessel, it is function of crevice corrosion based on gypsum formation and encapsulation of acids. Since it is an international market, the network can reach the entire world. For example, MHI is the leading FGD supplier and has operating systems in all the major countries. Steel air pollution control involves networks including the plants of major steel producers around the world. China is the largest producer of steel, and the steel air pollution control systems products use the same stainless grades regardless of location.
Using The Network to Advance Use of Stainless
A network with multiple product suppliers is in the best position to evaluate the stainless selection than is a lone product supplier. As networks gravitate toward coordinating efforts of component suppliers, stainless steel manufactures have an opportunity to reach decision makers and improve the decisions relative to stainless use.
The selection of stainless for AWE markets is complex and needs the evaluation of the Hubs products and networks.
Black liquor recovery boilers in pulp and paper are the heart of networks with the auxiliary components which require temperature and corrosion resistant stainless. Relatively few pulp and paper companies account for most of the stainless uses. Decisions to improve the process are likely to be made by the large international owners and not by the local plants. The large international owners are the ones most likely to install test coupons and evaluate new and better options. Air products and chemicals, Universal Oil Products( UOP) and other large system suppliers create net-
About the Author
Robert McIlvaine is the CEO of the McIlvaine Company, which publishes Industrial Valves: World Markets. He was a pollution control company executive prior to 1974 when he founded the present company. McIlvaine oversees a staff of 30 people in the U. S. and China. http:// www. mcilvainecompany. com
14 Stainless Steel World Americas- April 2025 | www. ssw-americas. com
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