Canada Steel Market Outlook
The Canada steel market attained a volume of 12.80 million metric tonnes (MMT) in 2024. Aided by the country’s robust construction sector, expanding automotive and manufacturing industries, and the ongoing infrastructure development initiatives, the market is projected to grow at a CAGR of 2.60% between 2025 and 2034 to reach a volume of 16.55 MMT by 2034.
Steel remains a critical component in Canada's economic framework, serving as the backbone for numerous industries including construction, transportation, machinery, and energy. The country's domestic production, supported by rich natural resources and technological integration, ensures a stable steel supply chain. The Canadian steel industry also plays a vital role in regional trade, with the United States being a significant partner under agreements like the United States-Mexico-Canada Agreement (USMCA).
Canada Steel Market Size
In 2024, the steel market in Canada stood at a volume of 12.80 MMT, reflecting steady growth supported by domestic consumption and exports. With increasing investment in both private and public infrastructure, the demand for various steel products—such as hot-rolled coil, rebar, structural beams, and pipes—continues to rise. The Canada steel market size is set to expand further, especially as Canada moves forward with long-term national infrastructure projects, including transportation upgrades, renewable energy facilities, and housing developments.
The moderate CAGR of 2.60% indicates stable yet sustainable growth. This trend aligns with the country's overall economic trajectory and commitment to balancing industrial expansion with environmental goals.
Canada Steel Market Share
Canada's steel market is largely dominated by a few key players, including both domestic producers and foreign subsidiaries. Companies such as ArcelorMittal Dofasco, Stelco Holdings Inc., and Algoma Steel Inc. command significant market share in terms of volume and product diversity. The market is segmented by product type (long steel, flat steel, tubular steel), end-use industries (construction, automotive, machinery, energy, and packaging), and production method (electric arc furnace and basic oxygen furnace).
Among these, the flat steel segment—primarily used in automotive, appliances, and shipbuilding—holds a considerable share due to its versatility and demand from high-volume manufacturers. The long steel segment is predominantly consumed in infrastructure and building projects, including bridges, highways, and residential structures.
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Canada Steel Market Trends
Several key trends are shaping the Canada steel market:
Green Steel and Decarbonisation Initiatives: As global and domestic pressures to reduce carbon emissions mount, Canadian steel producers are investing in low-emission technologies. The transition towards electric arc furnaces (EAFs), which emit significantly less CO₂ compared to traditional blast furnaces, is a growing trend.
Infrastructure Stimulus: Federal and provincial investments in infrastructure are boosting demand for structural steel. Projects in transit, energy grids, and public facilities are expected to maintain high consumption rates of steel over the next decade.
Reshoring and Domestic Manufacturing: To mitigate supply chain disruptions experienced during the pandemic, Canadian manufacturers are increasingly turning to local sources for steel, encouraging stronger demand within national borders.
Advanced High-Strength Steel (AHSS): The automotive industry’s preference for lightweight and durable materials is increasing the adoption of AHSS to improve fuel efficiency and passenger safety.
Drivers of Growth
The growth of the Canadian steel market is driven by several interrelated factors:
Growing Construction and Infrastructure Sector: Ongoing investments in public infrastructure, such as roads, bridges, and rail systems, are one of the primary drivers of steel consumption. The government’s “Investing in Canada Plan” allocates billions in funding, sustaining steel demand over the long term.
Expansion of the Automotive Industry: Canada’s strong automotive manufacturing base, concentrated in Ontario and Quebec, continues to require high volumes of specialized steel, particularly flat products and high-strength grades.
Energy Sector Developments: The construction of pipelines, power generation plants, and renewable energy infrastructure relies heavily on tubular and structural steel products.
Trade Agreements and Export Demand: Favorable trade relations, particularly with the United States, ensure that Canadian steel producers maintain access to a large and proximate market. The USMCA supports relatively tariff-free exports, facilitating consistent demand.
Urbanisation and Population Growth: As Canada’s population increases, the demand for housing, transportation, and urban infrastructure follows, all of which contribute to the steady consumption of steel.
Technology and Advancement
Technological innovation continues to enhance the efficiency and sustainability of steel production in Canada. Key advancements include:
Electric Arc Furnace (EAF) Technology: EAFs are gaining popularity due to their environmental benefits and ability to recycle scrap steel. Many Canadian steelmakers are transitioning to or upgrading existing facilities with EAFs.
Digitalisation and Automation: The adoption of Industry 4.0 technologies—such as IoT sensors, AI-driven process controls, and predictive maintenance systems—is helping steel plants increase productivity and reduce waste.
Steel Recycling and Circular Economy Models: Canada is a leader in steel recycling, with over 70% of its steel products made from recycled materials. Innovations in sorting and refining technologies are supporting this trend.
Research into Hydrogen-Based Steelmaking: To align with net-zero targets, some Canadian firms are exploring hydrogen as a cleaner alternative to carbon-based inputs in steel production.
Canada Steel Market Segmentation
The market can be divided based on product, type, end use and region.
Market Breakup by Product
- Flat Steel
- Long Steel
Market Breakup by Type
- Carbon Steel
- Alloy Steel
- Stainless Steel
- Tool Steel
Market Breakup by End Use
- Construction
- Mechanical Engineering
- Automotive
- Domestic Appliances
- Metalware
- Agricultural
- Others
Market Breakup by Region
- British Columbia
- Alberta
- The Prairies
- Central Canada
- Atlantic Canada
Competitive Landscape
Some of the major players explored in the report by Expert Market Research are as follows:
- Algoma Steel Inc.
- ArcelorMittal Dofasco
- Stelco Inc.
- Gerdau S/A
- Rolled Alloys
- Canam Group Inc.
- LMS Reinforcing Steel Group
- Walters Inc.
- Others
Challenges and Opportunities
Despite its positive growth outlook, the Canada steel market faces certain challenges:
Environmental Regulations and Carbon Emissions: While the push for greener steel production is necessary, it also requires significant capital investment and technological adaptation.
Import Competition: The domestic industry occasionally faces pricing pressure from lower-cost imports, particularly from Asia, which can undercut local suppliers and affect profitability.
Skilled Labor Shortages: As the steel industry modernises, there is a growing need for technically skilled workers, which could present a bottleneck in the coming years.
However, these challenges bring opportunities:
Green Transition Funding: Government support for cleaner production methods, including EAF and hydrogen steelmaking, presents opportunities for innovation leadership.
Export Expansion: With a stable and high-quality steel production base, Canada can expand its exports to new markets, particularly in Latin America and Europe.
Localisation of Supply Chains: Post-pandemic trends are reinforcing the importance of national supply chains, offering Canadian steel producers greater relevance in regional industrial ecosystems.
Canada Steel Market Forecast
Looking ahead, the Canada steel market is expected to maintain a steady upward trajectory. From a volume of 12.80 MMT in 2024, the market is projected to reach 16.55 MMT by 2034, growing at a CAGR of 2.60%. This growth is underpinned by consistent infrastructure investment, a resilient manufacturing base, and technological advancements aimed at increasing sustainability.
The adoption of low-carbon technologies, expansion into new markets, and policy support for green steel production will likely shape the future of the Canadian steel industry. As Canada positions itself as a leader in sustainable industrial practices, the steel sector will remain a central component of national economic development and international competitiveness.
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