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The stainless steel wire rods market size is estimated to grow at a CAGR of 3.94% between 2022 and 2027. The market size is forecast to increase by USD 1,514.41 million. The growth of the market depends on several factors, including growing demand from the construction industry, corrosion resistance and excellent mechanical properties, and the growth in the automotive sector
This stainless steel wire rods market report extensively covers market segmentation by application (steel wire, steel fasteners, steel bright bars, and others), product (8 mm, 10 mm, 6 mm, and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America).
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.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand from the construction industry is notably driving the market growth. The construction industry is one of the major consumers of steel products, including stainless steel wire rods. Stainless steel wire rods are mainly used in commercial, residential, and industrial buildings also in other public infrastructures such as bridges, highways, and tunnels. moreover, It is used as a basic raw material for manufacturing structural frameworks, high-strength plates, rectangular tubing, and other construction components that are used in different construction activities. As a result of the increased disposable incomes and the migration of the population to urban areas, cities are expanding to accommodate the growing population. Consequently, factors such as the construction of roads, railways, residential buildings, hospitals, and hotels will lead to increased construction activities and growing infrastructure.
Moreover, factors such as the construction of roads, railways, residential buildings, hospitals, and hotels will lead to increased construction activities and growing infrastructure. Rise in the construction activity in developing countries such as India and Thailand is forcing the growth of the global stainless steel wire rods market. The government of India is increasing investment in the development of the construction sector. For example, in September 2020, the Indian government allocated a sum of USD 8.58 billion for the implementation of the Odisha Economic Corridor Project. The demand for high-strength and cost-effective construction materials is increasing in the modern construction industry, which is expected to grow the demand for stainless steel wire rods and, in turn, propel the growth of the market in focus during the forecast period.
Strategic alliance and partnership among steel manufacturers is the key trend in the stainless steel wire rods market. Some steel manufacturers enter strategic partnerships to increase their productivity by expanding their manufacturing units. For example, in April 2022, ArcelorMittal announced that it had acquired 80% shareholding in Voestalpine's world-class Hot Briquetted Iron (HBI) plant located in Texas. This acquisition will help to ease the supply of raw materials for producing rolled steels, steel wire, and metallic coated steels. The company is a strategic partner to several major original equipment manufacturers, mostly automobile and appliance manufacturers.
Furthermore, in December 2020, Nippon Steel SG Wire Co., Ltd. acquired Essar Steel, one of the four major steel makers in India, jointly with ArcelorMittal. The company also acquired the Hazira steel mill in India to expand its manufacturing capacity from 7 million tons to over 14 million tons. This company has many partnerships in North America and China with local partners, such as ArcelorMittal and Baowu Steel, to develop local bases for downstream production processes by joint ventures. Those joint ventures supply high-grade steel products, such as steel wires, with Nippon Steel technical assistance, using semi-products provided by the partner. Thus, vendors' strategic alliance to expand their business will have a positive impact on the growth of the global stainless steel wire rods market during the forecast period.
Fluctuation in the prices of raw materials is the primary challenge in the stainless steel wire rods market. Fluctuation in raw material costs is a major threat to the growth of the global stainless steel wire rods market. Due to the price fluctuations in raw materials for various metals, such as aluminium, iron, stainless steel, and nickel, will directly impact the stainless-steel wire rods' pricing. For instance, in the second quarter of 2021, world iron ore prices rise to a record high of USD 212 per ton, roughly double the level of 2015, and in January 2022, prices are USD 133 per ton.
Moreover, the sudden change in the raw material price will affect vendors significantly because of the bargaining power of raw material suppliers. When the buyer's agreement is made, the loss is incurred by manufacturers. a small fluctuation in the price can lead to a large addition to the total cost due to stainless-steel wires being used in a wide range of industries, owing to the purchase of large quantities of products by buyers. However, this sudden increase in cost can lead to low demand and large losses due to inventory costs. In addition, in case of increased raw material costs, buyers have an option for substitutes. Thus, these factors collectively are expected to impede the growth of the global stainless steel wire rods market during the forecast period.
The market share growth by the steel wire segment will be significant during the forecast period. Steel wire is a type of wire made from high-carbon and low-carbon steel, which can be categorized into different wire types based on their properties and intended applications. Steel wire is used in various end-user industries like construction, industrial manufacturing, automotive, and agriculture steel wire is used. The growth shows in steel wire due to its versatility, durability, and strength, which makes it a favored material for many applications.
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The steel segment shows a gradual increase in the market share of USD 3,307.01 million in 2017 and continue to grow by 2021. Steel wires are commonly used at construction sites. Workers in construction sites mainly use these wires to lift heavy things such as cement blocks, machinery, or even people in the lift. Steel wire applications depend heavily on the type of construction being done and the processes happening on the construction site. Growth in urbanization and infrastructure investments drive the demand for steel wires in the construction sector. Governments around the globe focused considerably on enhancing their healthcare infrastructure and building new healthcare facilities to accommodate the increasing number of patients. For instance, in May 2021, the Ministry for Housing and Urban Development commenced the construction of a medical facility on the Tamil Nadu hospital premises with 500 beds. Thus, growing demand for steel wire from the above-mentioned end-user industries is expected to fuel the growth of the steel wire segment of the global stainless steel wire rods market during the forecast period.
8mm stainless steel wire rods find widespread application in industries like automotive, construction, and more due to their exceptional properties such as corrosion resistance, tensile strength, and durability. Their demand is increasing, particularly in the construction, manufacturing, and marine sectors. In construction, these wire rods are used for reinforcing concrete structures like bridges and tall buildings, providing stability and withstanding harsh weather conditions. The manufacturing industry utilizes them for producing bolts, nuts, and screws for automotive, aerospace, and defense applications, thanks to their strength and resilience. In the marine industry, these wire rods are essential for manufacturing ship rigging fittings that require high resistance to corrosion and abrasion in marine environments. Moreover, they find usage in other sectors like food processing for making conveyor belts and in renewable energy for wind turbine components. These factors are expected to boost the market growth.
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.
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In APAC region countries such as China, Japan, and India will drive market growth in the future due to the growth of the end-user industries such as automotive and construction. For example, in India, one hundred cities were supposed to be nominated for smart city projects under National Smart Cities Mission. This required an investment of USD 150 billion, and most of it was raised through private partnerships
Moreover, India and China are the biggest steel exporter in APAC. These countries export steel products to Japan, the EU, and the US. The growing economy and the increasing purchasing power of consumers in countries such as China and India have led to the demand for passenger vehicles has increased in these countries. Furthermore, an increase in government initiatives to encourage the use of EVs is driving the growth of the EV industry in the region. EVs have some advantages from license-plate lotteries and auctions in some Chinese cities, which significantly promote EVs. Thus, growth in the automotive industry will positively impact the growth of the regional market during the forecast period.
In 2020, several industries, such as automotive, manufacturing, and construction, in most countries of the region witnessed disrupted operations due to the outbreak of COVID-19. The rise in the number of COVID-19 cases drastically affected the manufacturing activities that use stainless steel wire rods in their production process in APAC. However, in 2021, after the vaccination drive, the regional market has regained momentum and business processes are back on track. The growth of the stainless steel wire rods market is based on increased government funding.
Vendors are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Acerinox SA: The company offers stainless steel wire rods such as Annealed wire rods, and Annealed and pickled wire rods with ecological coating, and Pickled wire rods.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
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 vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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 |
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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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