Canada Steel Market Size, Share and Industry Report | 2034

Canada Steel Market Outlook

According to the report by Expert Market Research (EMR), the Canada steel market attained a volume of 12.80 million metric tonnes (MMT) in 2024. Supported by increasing infrastructure development, the expansion of key end-use sectors such as automotive and construction, and rising domestic production capacity, the Canada steel market size is projected to grow at a compound annual growth rate (CAGR) of 2.60% during the forecast period of 2025-2034, reaching a volume of 16.55 MMT by 2034.

Steel plays a foundational role in Canada’s industrial economy. As a key material used in construction, transportation, manufacturing, and energy infrastructure, steel remains indispensable to national economic development. Canada’s geographic advantages, including abundant iron ore and access to hydroelectric power, coupled with its strong trade relationships, have enabled it to build a robust and competitive steel sector.

Canada Steel Market Size and Share

The Canadian steel industry is among the top ten global steel exporters, and despite the relatively modest size of its domestic consumption compared to global counterparts, Canada punches above its weight in terms of quality and innovation. In 2024, the Canada steel market volume of 12.80 MMT reflected strong domestic demand primarily from sectors such as construction (which accounted for the largest share), automotive, energy, and manufacturing.

Ontario and Quebec dominate the market in terms of both production and consumption due to the presence of major steel mills and manufacturing clusters. In terms of product segmentation, flat steel products, such as hot-rolled coil and cold-rolled sheet, held a significant share, driven by demand from the automotive and appliance sectors. Long steel products, including rebar and structural sections, followed closely, buoyed by ongoing and planned infrastructure investments.

Canada Steel Market Trends

Several key trends are shaping the Canada steel market. One prominent trend is the growing emphasis on sustainable steel production. Canadian steel producers are increasingly investing in low-carbon technologies, including electric arc furnaces (EAFs) and hydrogen-based steelmaking, to reduce their environmental footprint in line with federal climate targets.

The second trend is digitalisation and Industry 4.0 adoption. Steel manufacturers are leveraging advanced analytics, automation, and AI-powered systems to optimise production efficiency, reduce waste, and enhance product quality. Predictive maintenance, real-time quality monitoring, and digital twins are becoming mainstream in Canadian steel mills.

Another noteworthy trend is the shift towards value-added and specialised steel products. As global competition intensifies, Canadian producers are focusing on higher-grade steels with enhanced strength, corrosion resistance, and performance characteristics tailored to specific industrial applications, especially in the aerospace and automotive sectors.

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Drivers of Growth

A combination of macroeconomic and sector-specific drivers is supporting the growth of the Canada steel market. Foremost among them is the country’s infrastructure renewal agenda. The federal government has earmarked billions of dollars for upgrading transportation networks, bridges, water systems, and clean energy infrastructure, all of which require significant volumes of structural and reinforcing steel.

The automotive sector, another critical driver, continues to evolve rapidly, with investments in electric vehicle (EV) manufacturing and battery plants across Ontario and Quebec. As the demand for lightweight, high-strength steel increases to meet automotive efficiency standards, the steel industry stands to benefit considerably.

Additionally, rising energy sector activity, including pipeline development and renewable energy projects such as wind turbines and solar farms, is contributing to the demand for steel products. Meanwhile, increased housing construction, including high-rise residential and modular buildings, is propelling the demand for long steel products.

Technology and Advancements

Technological innovation is transforming Canada’s steel industry. The adoption of electric arc furnaces, which use recycled scrap as feedstock and significantly reduce carbon emissions compared to traditional blast furnaces, is gaining momentum. Leading steelmakers are investing in EAF retrofits and exploring hybrid steelmaking models to balance productivity with environmental responsibility.

Emerging technologies such as green hydrogen-based Direct Reduced Iron (DRI) processes are also being explored as long-term decarbonisation solutions. These technologies align with Canada’s national objectives under the Net-Zero Emissions by 2050 goal.

On the digital front, Industry 4.0 tools such as IoT sensors, AI-driven process control, and robotics are being deployed to enhance safety, optimise resource utilisation, and drive competitiveness. The integration of these smart technologies enables real-time process monitoring and improved decision-making across the production value chain.

Canada Steel Market Segmentation

The market can be divided based on product, by type, end use and region.

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 a favourable outlook, the Canada steel market faces several challenges. Chief among them is global competition, particularly from low-cost producers in Asia. Dumping and unfair trade practices remain persistent concerns, prompting Canadian authorities to enforce trade remedies and anti-dumping duties to protect domestic players.

Environmental regulations and carbon pricing frameworks, while essential for sustainability, present operational cost pressures for steelmakers. Companies must balance compliance with maintaining cost competitiveness, particularly against foreign producers operating under less stringent environmental standards.

Moreover, workforce shortages and the need for skilled labour to operate technologically advanced facilities pose an ongoing constraint. Upskilling programs and industry-academia partnerships are essential to address this skills gap.

Nonetheless, these challenges also present opportunities. Canada’s reputation for high-quality, low-carbon steel production can be leveraged to access premium markets, particularly in Europe and the U.S., where buyers are increasingly focused on sustainability. The growing demand for green buildings and low-carbon construction materials offers a significant growth avenue for steel manufacturers positioning themselves as environmentally responsible suppliers.

Canada Steel Market Forecast

The Canada steel market is poised for steady growth over the next decade, with a projected CAGR of 2.60% from 2025 to 2034. By 2034, the market volume is expected to reach 16.55 MMT, driven by a confluence of infrastructure development, industrial expansion, and technological advancement.

Investment in decarbonisation and innovation will be crucial to sustaining long-term competitiveness. Federal incentives and regulatory clarity will further shape the market trajectory, as companies align with climate goals and position themselves for green economy opportunities.

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