Global Steel Wire Market to reach US$25.4 Billion by 2015, according to New Report by Global Industry Analysts, Inc. The steel industry’s business cycles reflect the general economic activity of a nation. Steel wire being a part of steel industry is no exception and is dependent on a number of factors such as level of economic activity, and state of the end use industries such as construction and automotive industry (which are major consumers of steel wire). Growing investments in infrastructure and higher disposable incomes in several developing economies are key factors driving growth in steel and its derivative products. Besides, the steel wire industry is engaged in the production of a wide gamut of products such as steel cords used in reinforcing tires and hoses.
Buoyancy in construction and automotive industries largely determines the demand for wire products worldwide, as they represent the key end-use markets for steel wire. In addition, steel wire finds application in furniture, agriculture and appliance sectors. Several new steel mill technologies were developed to meet demand for high-quality steel wire rod products from construction and automotive industries. These technological innovations in the field of dimension measurements, improved finishing operations, and rolling with precision tolerances, ensured consistency in dimensions, finish, and mechanical properties.
Industrial growth in developing economies is a major growth driver for the steel wire industry. Asia Pacific constitutes the most significant regional market for steel wire. Infrastructure expansion and higher disposable incomes leading to greater ownership of consumer durables and automobiles are major factors driving growth in the Asia pacific region. Rampant economic expansion in China has catapulted the nation as the largest and fastest growing consumer of steel and steel products in the world. In the near future Chinese exports of steel wire products especially PC strand wires is expected to increase significantly. There is a plethora of growth opportunities for Indian steel wire market. Rapidly expanding construction, infrastructure, telecom and manufacturing industries bode well for the Indian steel wire market.
The global economic downturn affected the steel wire industry adversely in 2008 and 2009. The developed and mature western markets of North America Europe and Japan were the worst hit recording declines during the period. The demand for PC strand wire declined in 2008 and 2009, picking up pace again in 2010. Chinese PC strand wire imports into US increased significantly during the period 2008-10, and domestic production declined drastically. In contrast, the Asia-pacific markets fared well during the recession and suffered only marginal losses. The Asian region recovered fast from the recession in 2009 due to the robust domestic demand. The global market on the whole is expected to fare well post 2010-2011 due to thriving Asian economies.
Asia-Pacific, led by advances from rapid growth markets including China, India, S.Korea and Indonesia among others, stands tall as the single largest market, as stated by the new research report on Steel Wire. Europe, Japan and the US comprise the other major markets worldwide for steel wires. In terms of growth potential, the Asian region is the clear leader, forecast to surpass all the other markets at a compounded annual growth rate of 4.9% through 2015.
By product/segment group, Carbon Steel Wire, segregated by various types including plain and plated/coated with zinc among others, towers over the other segments of the steel wire market. Plain carbon steel wire market is anticipated to display high potential over the years with increased usage and demand levels. On a similar note, the Alloy Steel Wire, segment is anticipated to display highest growth over the years at a projected CAGR of about 2.8% for the analysis period.