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The Global Stainless Steel Wire Rods Market size is estimated to grow at a CAGR of 3.94% between 2022 and 2027 with the market share forecast to increase by USD 1,514.41 million.
This stainless steel wire rods market report extensively covers market segmentation by Application, Product, and Geography. The application segment is classified into steel wire, steel fasteners, steel bright bars, and others. The Product segment is categorized into 8 mm, 10 mm, 6 mm, and others, and the Geography (APAC, Europe, North America, Middle East and Africa, and South America.
The market is experiencing significant growth due to increasing demand from the construction industry. However, obstacles like volatile raw material prices could impede market growth. Nevertheless, anticipated trends such as strategic collaborations and partnerships among steel manufacturers are expected to propel the growth of the stainless steel wire rods market in the forecast period.
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Stainless steel wire rods are made from stainless steel billets that have undergone heating, rolling, and coloring processes. Stainless steel wire rods offer excellent corrosion resistance, tensile strength, and durability because of their high nickel and chromium content. Stainless steel wire rods are widely used in the manufacturing of wires and cables, the construction industry, the automotive industry, and the medical industry, among others.
During the forecast period, there will be a notable increase in market share for the steel wire segment. Steel wire, manufactured from high-carbon and low-carbon steel, can be classified into various types based on its properties and intended uses. It finds application in diverse industries such as construction, industrial manufacturing, automotive, and agriculture. The growth in the steel wire market can be attributed to its versatility, durability, and strength, which make it a preferred material for numerous applications.
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The steel segment has witnessed a steady rise in market share, reaching USD 3,307.01 million in 2017, and is projected to continue growing until 2021. Steel wires find widespread use in construction sites, where they are commonly employed for lifting heavy objects such as cement blocks, machinery, and even people in elevators. The application of steel wires varies depending on the type of construction and the specific processes taking place on-site. The demand for steel wires in the construction sector is driven by the growth of urbanization and infrastructure investments. Governments worldwide have prioritized the improvement of healthcare infrastructure and the construction of new healthcare facilities to accommodate the rising number of patients. As an example, in May 2021, the Ministry for Housing and Urban Development initiated the construction of a 500-bed medical facility on the premises of a hospital in Tamil Nadu. Therefore, the increasing demand for steel wires from the aforementioned end-user industries is expected to propel the growth of the steel segment in the global stainless steel wire rods market throughout the forecast period.
APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Market growth in the future will be driven by the expansion of end-user industries such as automotive and construction in countries including China, Japan, and India. For example, India planned to select one hundred cities for smart city projects as part of the National Smart Cities Mission, requiring a USD 150 billion investment, with a significant portion raised through private partnerships. Thus the demand for stainless steel wire rods increased. India and China serve as major steel exporters in the APAC region, supplying steel products to Japan, the European Union, and the United States, further contributing to the production of stainless steel wire rods in APAC.
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The manufacturing sector in APAC, particularly in consumer products, automotive, and machinery and equipment, is also experiencing growth, which will further drive the adoption of stainless steel wire rods in the region. In Japan, the manufacturing purchasing managers' index (PMI) increased from 49.8% in January 2022 to 50.6% in February 2022, indicating a return to expansion in the manufacturing sector. Similarly, South Korea's manufacturing sector output continued to show positive momentum in early 2021, with the seasonally adjusted South Korea Manufacturing PMI rising to 53.2% in January 2021. Thus, the growth of the manufacturing sector, particularly in emerging economies, will stimulate the demand for stainless steel wire rods and contribute to the regional market's growth during the forecast period.
Growing demand from the construction industry is a major stainless steel wire rods market driver. Stainless steel wire rods are widely used in construction due to their strength and versatility. With the rapid urbanization in developing countries and increased investment in the construction sector, the demand for stainless steel wire rods is on the rise. These high-strength and cost-effective materials cater to the growing need for durable construction components. As a result, the global market for stainless steel wire rods is expected to experience significant growth during the forecast period.
Strategic alliance and partnership among steel manufacturers is an ongoing stainless steel rods market trends. Steel manufacturers are forming strategic alliances to expand their manufacturing capabilities and increase productivity. For example, ArcelorMittal acquired an 80% shareholding in Voestalpine's HBI plant, while Nippon Steel acquired Essar Steel and the Hazira steel mill. These alliances enable a smoother supply of raw materials and enhance production capacity. Such strategic partnerships are expected to have a positive impact on the growth of the global stainless steel wire rods market.
Fluctuation in the prices of raw materials is a key market challenge hindering the growth of the market. Fluctuating raw material costs pose a major threat to the growth of the global stainless steel wire rods market. Price volatility in metals like aluminum, iron, stainless steel, and nickel directly impacts the cost of stainless steel wire rods. This can lead to significant losses for manufacturers and reduced demand due to increased prices. Additionally, buyers may choose substitutes in response to higher raw material costs. These factors hinder the market's growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Outokumpu- The company offers stainless steel wire rods that have a wide range of grades, sizes, and shapes with consistently high product quality and delivery reliability.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Acerinox SA, Aperam SA, ArcelorMittal SA, E United Group, EVRAZ Plc, Fasten.it S r l, Gustav Wolf GmbH, HONG YUE STAINLESS STEEL Ltd., Ivaco Rolling Mills, JFE Holdings Inc., Jindal Steel and Power Ltd., JSW STEEL Ltd., Mirach Metallurgy Co. Ltd., Nippon Steel Corp., NV Bekaert SA, Outokumpu Oyj, POSCO holdings Inc., Shagang Group Inc., Tsingshan Holding Group Co. Ltd., and Venus Wire Industries Pvt. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Stainless Steel Wire Rods Market Customer Landscape
The outbreak of COVID-19 in 2020 disrupted operations in industries like automotive, manufacturing, and construction across APAC countries. Nationwide lockdowns implemented in countries such as India, China, and Japan negatively impacted the production of automotive and construction machinery, which rely on stainless steel wire rods. Investment plans were deferred, leading to a sharp decline in demand for stainless steel wire rods in the region during the first half of 2020. However, the market has regained momentum in 2021 as business processes resumed. Increased government funding and economic stimulus packages have supported industries, including automotive and construction, driving the demand for stainless steel wire rods. Consequently, the APAC market for stainless steel wire rods is expected to grow during the forecast period.
Stainless Steel Wire Rods Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.94% |
Market growth 2023-2027 |
USD 1,514.41 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.66 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 61% |
Key countries |
US, China, India, Japan, and South Korea |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acerinox SA, Aperam SA, ArcelorMittal SA, E United Group, EVRAZ Plc, Fasten.it S r l, Gustav Wolf GmbH, HONG YUE STAINLESS STEEL Ltd., Ivaco Rolling Mills, JFE Holdings Inc., Jindal Steel and Power Ltd., JSW STEEL Ltd., Mirach Metallurgy Co. Ltd., Nippon Steel Corp., NV Bekaert SA, Outokumpu Oyj, POSCO holdings Inc., Shagang Group Inc., Tsingshan Holding Group Co. Ltd., and Venus Wire Industries Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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