Global Steel Wire Rod and Wire Market - 2023-2030

Global Steel Wire Rod and Wire Market - 2023-2030

Global Steel Wire Rod and Wire Market reached US$ 174.5 billion in 2022 and is expected to reach US$ 269.5 billion by 2030, growing with a CAGR of 5.6% during the forecast period 2023-2030.

The market for steel wire has potential due to the growth of electric cars. For applications such as electric motors, charging stations and battery components, EVs need specialized steel wire materials. Demand for these specialty wire goods is anticipated to rise as EV usage keeps escalating. Technology improvements have been continuously enhancing product quality, manufacturing effectiveness and sustainability in the steel wire rod and wire industry.

Steel wire rods and wire products are heavily used in the construction sector, where they are used to create mesh and fences as well as to reinforce concrete buildings. The demand for steel wire goods is still high as urbanization and infrastructure development projects spread globally. Many consumer items, such as furniture, recreational equipment and home furnishings, are made with steel wire materials. It segment's growth is fueled by consumer demand for these products.

Asia-Pacific dominates the steel wire rod and wire market covering nearly 53.4% market share and the greatest automobile markets in the world, including China and India, are found in Asia-Pacific. Steel wire components used in suspension systems, tire reinforcement and other automotive applications are in higher demand as a result of the region's expanding automotive industry. In battery component and electric motor applications, the march towards electric vehicles (EVs) has also opened up prospects for specialized wire products.

Dynamics

Increasing Demand from the Construction and Automotive Industries

Steel wire rods and wire are used in the automobile industry for many different purposes, such as seat structures, tire reinforcement and suspension systems. Due to the industry's emphasis on lightweight to maximize fuel economy and lower emissions, there is now more demand for sophisticated steel wire products that combine strength and weight reduction.

For Instance, in 2022, Kobe Steel, Ltd. stated on November 14 that it signed a share transfer contract with Millcon Steel Public Company Limited. By the agreement, Kobe Steel bought 25% of Millcon Steel's issued shares in Kobelco Millcon Steel Co., Ltd. (KMS), a wire rod manufacturing facility in Thailand that was formed in 2016 as a joint venture with Millcon Steel. The share transfer has resulted in KMS being a consolidated subsidiary of Kobe Steel.

Technological Developments in the Production of Steel Wire Rod

The drive for higher productivity and efficiency is one of the main forces behind technical developments in the manufacture of steel wire rods. Steel producers are always looking for methods to improve their operations, cut back on energy use and boost output. Automation, robotics and data analytics advancements have enabled more accurate management of the manufacturing process, resulting in increased output with less utilization of resources.

For Instance, in 2023, Indian Steel & Wire Products (ISWP), a division of Tata Steel, intends to increase its capacity in Jamshedpur. The proposed project comprises strengthening HC & MS GI Wires & wire products at the Wire Mill and enhancing its current Rebars and wire Rods capacity at the Wire Rod Mill to satisfy the growing market demands.

Increasing Environmental Regulations and Sustainability Concerns

The use of cleaner, more energy-efficient industrial methods is required by environmental regulations. It frequently entails the employment of cutting-edge tools and technology to cut back on pollution and greenhouse gas emissions. For instance, the fabrication of steel wire rods and wire may drastically lower its carbon footprint by using electric arc furnaces and incorporating renewable energy sources into the production process.

Reducing carbon emissions is a primary concern as the globe concentrates on combating climate change. Steel manufacturers are under pressure to improve their environmental effects by putting policies in place to reduce energy use, maximize resource utilization and embrace recycling practices to lessen waste. The actions support sustainability objectives and lessen the amount of carbon that goes into making steel.

Price of the Raw Materials Volatility

Supply and demand dynamics have a significant role in determining the price of raw commodities like steel scrap and iron ore. Any interruptions in the supply chain, whether brought on by business problems or geopolitical events, can cause swift and significant price changes. For example, supply disruptions due to the Russia-Ukraine conflict or fluctuations in demand from key markets like China can have immediate and pronounced effects on prices.

Additionally, Steel wire rod and wire producers frequently have slim profit margins, which makes them especially susceptible to fluctuations in the price of raw materials. It becomes difficult for producers to pass on greater costs to customers in the form of higher pricing when prices rise, especially if demand is constant or weak. Profit margins may be impacted and it may also affect the industry's businesses' financial stability.

Segment Analysis

The global steel wire rod and wire market is segmented based on product, material, distribution channel, application and region.

Increasing Demand for Expanding Building Activity in Construction Industry

The increasing demand for wires, ropes and rods made of carbon steel to sustain infrastructure and transport large pieces of construction equipment and machinery. Market expansion is anticipated to be fueled by expanding building activity and accelerated industrialization in emerging nations. Steel wires are increasingly finding application in various car components and structures due to their ease of production and desirable qualities such as ductility, exceptional tensile strength and corrosion resistance.

The growth of residential zones, healthcare facilities and educational institutions has driven up the demand for steel wire in the construction sector leading it to cover more than 45.2% share in 2022. Its exceptional attributes, including high strength, resistance to abrasion and corrosion and ability to withstand deformation, make it versatile for a wide range of applications, including reinforcing and binding rebar, contributing to the structural integrity of buildings. A framework of the mesh made of steel wire holds all contemporary constructions together.

Geographical Penetration

Rising Demand for Automobiles, Propelling the Need for Steel Wire Rods and Wire in Asia-Pacific

Asia-Pacific has been a dominant force in the global steel wire rod and wire market and China is among the highest share holders which has covered nearly 1/3rd in 2022. The Asia-Pacific automobile market has been growing quickly. It industry largely depends on steel wire products for a variety of uses, such as building structures and automobile parts. The demand for vehicles is increasing along with the middle class, which is driving up the price of steel wire rods and wire.

Additionally, the market is expanding as a result of the region's thriving industrial industry, which includes electronics and machinery. In recent years, the steel wire rod and wire market's rise has been significantly fueled by Asia-Pacific, due to these reasons as well as increasing investment in cutting-edge production technology.

The market for steel wires is anticipated to develop as a result of rising demand for high-rise structures. The major building components used in high-rise projects are steel and reinforced concrete. Residential buildings often utilize concrete in their construction, whereas skyscrapers predominantly employ steel frames.

For Instance, the urban population numbered 7.8 billion in 2021, with an estimated additional 2.5 billion expected to inhabit cities and urban areas over the next two to two-and-a-half decades. In highly crowded cities where unoccupied plots are present, high-rise structures, particularly residential ones, have shown to be advantageous. As a result, the market expands as high-rise development demand increases.

For instance, in 2020, the India-based Steel Authority of India's Iisco Steel Plant Burnpur (SAIL- ISP) released a premium line of wire rod goods as part of its efforts to increase market share across multiple industries and meet the expanding demands of its clients. The organization created the Cable Armour Quality Wire Rod, which offers mechanical protection and enables the cable to tolerate more stress.

COVID-19 Impact Analysis

The COVID-19 pandemic significantly affected the steel wire rod and wire market globally in 2021, causing the sector to undergo a period of recovery and adaptation. In the early stages of the pandemic, widespread lockdowns and restrictions interrupted building and industrial operations, which decreased demand for steel goods, especially wire rods and wire. As a result, production levels declined, capacity sat idle and supply chains encountered difficulties as steel mills adapted to the new market circumstances.

The industry proved its adaptability as the year went on by evolving with the environment. Infrastructure expenditure was raised in many regions to boost economic growth, which sparked a rebound in manufacturing and construction. It was the driving force behind the recovery. A key user of steel wire goods, the automobile industry also recovered because of changes in the supply chain and customer demand.

Steel producers, however, continued to face difficulties due to supply-side issues, such as changes in the price of raw materials and delays in shipment. Additionally, the epidemic increased the steel industry's mechanization and digitization. In order to increase productivity and decrease the need for on-site staff, businesses started using remote monitoring and repair of equipment.

Furthermore, the market for steel wire rods and wire products has been affected by sustainability and environmental concerns, which have become more prominent and place a higher focus on eco-friendly production methods and materials. Overall, the industry handled the pandemic's difficulties with flexibility, proving its ability to bounce back and change in response to shifting global conditions.

Russia-Ukraine War Impact Analysis

The international market for steel wire rods and wire may be significantly impacted by the ongoing conflict between Russia and Ukraine. Both countries are prominent actors in the global steel industry, with Ukraine generating a sizeable quantity of iron ore, a necessary raw material for creating steel and Russia contributing a sizeable share of the world's supply of steel.

Supply shortages and higher production costs for steel wire rod and wire makers globally may result from the war's disruption of iron ore mining and shipping, as well as possible infrastructure damage and logistical difficulties. The dynamics of the market might change as a result, leading to price instability, decreased availability and the requirement for steel companies to look for other raw material suppliers.

The market for steel wire rods and wire will likely be significantly impacted by the Russia-Ukraine war. A large source of the primary raw material required for the production of steel is Ukraine, which is well known for its iron ore output. In the meantime, Russia's participation in the global steel supply chain strengthens the ties between these two nations.

Iron ore transport and extraction are expected to be disrupted as the battle progresses and infrastructure damage is also a possibility. Manufacturing of steel wire rods and wire products may be affected by these interruptions, which might lead to shortages of supplies and higher manufacturing costs. In turn, this is likely to lead to price changes, restrict product availability and force steel makers to look for alternate raw material sources, thereby changing the competitive landscape of the sector.

Additionally, the global unpredictability brought on by the conflict might influence financing alternatives, global trade agreements, investor confidence and commercial opportunities in the steel wire rod and wire sector. In order to minimize disruptions and be ready for future long-term changes in the steel sector's landscape, industry players must actively watch developments, diversify their supply networks and modify their strategies.

By Product
• Steel Wire Rod
6mm
8mm
10mm
Above 10mm
• Steel Wire
0.01-0.08mm
0.09-1.6mm
1.7-4mm
Above 4mm

By Material
• Carbon Steel
Steel Wire Rod
Steel Wire
• Alloy Steel
Steel Wire Rod
Steel Wire
• Stainless Steel
Steel Wire Rod
Steel Wire
• Others
Steel Wire Rod
Steel Wire

By Distribution Channel
• B2B
Steel Wire Rod
Steel Wire
• B2C
Steel Wire Rod
Steel Wire

By Application
• Construction
Steel Wire Rod
Steel Wire
• Automotive
Steel Wire Rod
Steel Wire
• Energy & Power
Steel Wire Rod
Steel Wire
• Industrial
Steel Wire Rod
Steel Wire
• Agriculture
Steel Wire Rod
Steel Wire
• Others
Steel Wire Rod
Steel Wire

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On February 06, 2023, JFE Steel Corporation plans an additional expansion for a launch in the fiscal year beginning April 2026 while also increasing the electrical steel sheet capacity of its West Japan Works for startup scheduled for the first half of the fiscal year beginning in April 2024. The further expansion, which would cost around 50.0 billion yen, will increase the factory's present output of the highest-quality non-oriented electrical steel sheets used in the electric cars' primary engine motors.
• On December 20, 2022, the shares of metal-producing company Shyam Metalics and Energy rose about 9% to Rs 317 after the company had entered the stainless-steel industry by acquiring Mittal Corp. in an NCLT-led resolution procedure. With the acquisition, Shyam Metalics increased its capacity for stainless steel, wire rods and bar milling to 1,50,000 tons annually. According to a BSE filing, the firm would invest Rs 7,500 crore over the next 4–5 years to further diversify its metals operations.
• On 1 March 2023, Bekaert announced a deal with its present partners to sell them a 136 million dollar stake in its Steel Wire Solutions businesses in Chile and Peru. The transaction is a part of Bekaert's plan to expand into areas that are expanding more quickly, particularly those that provide higher profit margins and higher returns on investment, such as innovative transportation, green energy and low-carbon concrete solutions.

Competitive Landscape

The major global players in the market include ArcelorMittal, Nippon Steel Corporation, Emirates Steel, Hebei Sakaguchi Stainless Steel, Ivaco Rolling Mills, Kobe Steel Ltd., JFE Steel Corporation, EVRAZ, Fagersta Stainless and Tata Steel Limited.

Why Purchase the Report?
• To visualize the global steel wire rod and wire market segmentation based on product, material, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of steel wire rod and wire market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global steel wire rod and wire market report would provide approximately 70 tables, 70 figures and 196 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies