Stainless Steel Wire Rods Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, India, US, Japan, South Korea - Size and Forecast 2024-2028

Stainless Steel Wire Rods Market Size 2024-2028

The Stainless Steel Wire Rods Market size is forecast to increase by USD 1.66 billion and is estimated to grow at a CAGR of 4.15% between 2023 and 2028. The market is witnessing significant growth, driven by the expanding construction industry's increasing demand for stainless steel in infrastructure projects. This sector's growth is further fueled by strategic alliances and partnerships among leading steel wire manufacturers, aiming to strengthen their market presence and enhance production capabilities. However, the market is also confronted with challenges such as the fluctuation in prices of raw materials like nickel and chromium, which can impact the profitability of stakeholders. Additionally, stringent regulations regarding the use of stainless steel in various applications add to the market complexity. Overall, the market is expected to grow steadily, with opportunities arising from increasing applications in the automotive, oil and gas, and power generation industries.

What will be the Size of the Market During the Forecast Period?

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Market Definition

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.

Market Segment Insights

Application Insights

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 3.43 billion in 2018, and is projected to continue growing until 2022. 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 market throughout the forecast period.

Regional Insights

APAC is estimated to contribute 66% 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. 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.

Market Dynamics

The Market is a significant sector in the long-term products industry. These wires, known for their corrosion resistance, find extensive applications in various industries. The chromium content in stainless steel wire rods determines their grade and resistance level. The market for stainless steel wire rods is driven by their high tensile strength, lightweight, and versatility. Construction, mining, marine, oil & gas, aviation, nickel, medical, paper mills, household applications, manufacturing, exporting, and integrated facilities are key industries utilizing stainless steel wire rods. These wires offer excellent performance and reliability, making them a problem-solver for industries requiring strength-to-weight ratio, durability, and biocompatibility. Ultra-fine wires and robust wires are popular product categories in the market. The ultra-fine wires are used in various industries, including medical and electronics, due to their high strength-to-weight ratio and biocompatibility. Robust wires, on the other hand, are preferred for heavy-duty applications due to their high durability and reliability. The market is expected to grow significantly due to the increasing demand for lightweight and high-performance materials in various industries. The market is also driven by the increasing installed capacity of stainless steel manufacturing facilities worldwide. Overall, the market is a dynamic and evolving sector, offering numerous opportunities for manufacturers and suppliers.

Key Market Driver

Growing demand from the construction industry is a major 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.

Significant Market Trend

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 rods market.

Major Market Challenge

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 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.

Who are the Major Market Companies?

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.

 Market Customer Landscape

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.

Market Customer Landscape

Market Analyst Overview

Stainless Steel Wire Rods are long products known for their corrosion resistance and high tensile strength. The chromium content in these wires enhances their durability and reliability, making them a problem-solver in various industries. Stainless Steel Wire Rods come in different weight capacities and are used extensively in construction projects for vibration dampening and support cable applications. In mining, they serve as hoist ropes and anchoring buildings. The marine industry utilizes these wires for mooring cables and suspension bridges' mast stays. The oil & gas sector employs them for drilling and production processes. Aviation uses them for lightweight wires in aircraft structures. In the medical field, their biocompatibility makes them suitable for surgical instruments and implants. Stainless Steel Wire Rods are versatile and reliable, used in paper mills, household applications, and manufacturing processes. Exporting these rods from integrated facilities ensures performance and reliability for global clients. Ultra-fine wires offer strength-to-weight ratio advantages in various applications, including guard rails and scaffolding systems. 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. Marine applications often involve critical lifting operations and towing operations that require robust load-carrying cables. In the shipbuilding and offshore oil rigs sectors, rust resistance and flexibility are essential for handling harsh environments. Control cables, parachute cables, and safety cables are vital for ensuring safety and reliable performance. Additionally, downhole tools and hoisting equipment are crucial in the mining industry and coastal bridge construction. The aviation industry also benefits from these durable materials. Emphasizing cost savings and emergency support, these cables play a significant role across diverse sectors, including slope stabilization and safety in harsh environments.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028.
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, Europe, North America, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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