Global Zn-Al-Mg demand to 62M tons by 2025, China leading!

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Publish time: 29th May, 2025      Source: CCM
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  Summary : 2024 global Zn-Al-Mg coated steel demand: 58M tons, 2025 forecast 62M tons (high-end share up). Mg-Al-Zn coated carbon steel market: $22.8B in 2024, $27.5B in 2025. China (largest producer, >30% output in 2023, Shandong/Guangdong leading) expands via Belt and Road. U.S. steel tariffs hit exports, reshape markets.

  

  

  In 2024, the global total demand for zinc-aluminum-magnesium (Zn-Al-Mg) coated steel reached 58 million tons, and it is expected to grow to 62 million tons by 2025. Driven by the increasing demand from emerging sectors such as new energy vehicles and smart home appliances, the market share of high-end Zn-Al-Mg coated steel is projected to rise from 25% in 2024 to 30% in 2025.

  

  According to CCM observations, the global market size of magnesium-aluminum-zinc coated carbon steel was $22.838 billion in 2024 and is expected to reach $27.459 billion in 2025.

  

  

  China's Position

  China is the world's largest producer of Zn-Al-Mg coated steel. In 2023, its production volume was approximately 3 million tons, accounting for over 30% of the global total. With continuous efforts by Chinese enterprises in technological innovation, product development, and market expansion, the competitiveness of China's Zn-Al-Mg coated steel products in the international market has gradually increased, and its position in the global industrial chain has become increasingly important.

  

  In terms of production, Shandong Province produced approximately 1 million tons of Zn-Al-Mg coated steel in 2023, accounting for 15% of the national total; Guangdong Province produced about 0.8 million tons, accounting for 12% of the national total. It can be seen that Shandong in North China and Guangdong in South China have a certain scale of production, while the production share in other regions is relatively scattered, indicating an unbalanced regional distribution of production.

  

  With the help of the "Belt and Road" initiative, Chinese enterprises can further expand overseas markets, increase product exports, and improve international market share. For example, cooperating with countries rich in resources but with relatively weak steel industries to establish Zn-Al-Mg coated steel production bases can not only meet local market demand but also radiate to surrounding areas.

  

  The "Belt and Road" initiative has promoted technological exchanges and cooperation among countries. Chinese enterprises can collaborate with scientific research institutions and enterprises in countries along the route to jointly develop new technologies and products, improve the performance and quality of Zn-Al-Mg coated steel, and meet the needs of different markets. At the same time, they can also absorb foreign advanced technologies and experience to further enhance the technological level and innovation capabilities of China's Zn-Al-Mg coated steel industry.

  

  

  

  Impact of U.S. Tariff Policies

  The U.S. tariff increases on imported steel products have directly raised the cost of Zn-Al-Mg coated steel entering the U.S. market. For export enterprises, the price competitiveness of their products has declined. For example, although the direct export volume of China's coated steel plates to the U.S. accounts for a low proportion of the total export volume, it has still been affected, with fluctuations in export volume during 2022-2024.

  

  Some international purchasers may turn to suppliers from other countries due to price increases caused by tariffs, leading to order losses and declining export earnings for relevant export enterprises, which in turn affects their production scale and economic benefits.

  

  In addition, tariff policies have also changed the global market pattern of Zn-Al-Mg coated steel. On the one hand, domestic U.S. steel enterprises have enhanced their competitiveness in the domestic market due to tariff protection and may expand their production scale to seize the market share originally held by imported products. On the other hand, to cope with trade barriers, other countries and regions may strengthen regional trade cooperation, forming new trade patterns. For example, some countries may increase trade exchanges within the Asia-Pacific region and reduce their dependence on the U.S. market, which will prompt adjustments in the trade flow and market distribution of global Zn-Al-Mg coated steel.

  

     

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