Rebound in construction, auto sectors to drive global steel wire demand

The global steel wire market is projected to reach US$27.9 billion by 2017, according to Global Industry Analysts Inc. (GIA). Major factors driving growth in the market include recovery in the global automotive and construction industries, along with increasing demand from other end-use markets such as industrial, furniture, appliances and agriculture. Substantial growth in demand for steel wire from emerging markets such as Asia-Pacific would propel the steel wire market through the analysis period.

Demand for steel reflects the general trend in the world economy, which also applies to the steel wire industry. Consequently, demand for steel wire is dependent upon the overall health of sectors such as the automotive and constructive industries. After posting a gradual recovery in 2010, the steel industry's fortunes slipped during mid-2011, with the market being negatively affected by the economic slowdown triggered by the debt crisis in Europe. In the near term, revival in the European steel market remains uncertain as fiscal austerity and tight credit conditions continue to afflict majority of the European economies. In North America, demand for the metal is expected to gradually improve in line with recovery in construction and automobile sectors. China which has been one of the vibrant economies till recent times is expected to register softer demand owing to the government’s initiatives to temper growth in the real estate market. In the long term, emerging Asian markets, excluding China are forecast to drive the global steel wire market. Infrastructure expansion and higher disposable incomes leading to greater ownership of consumer durables and cars in these markets comprise the primary factors driving growth in these markets.

New technologies continue to drive the global steel wire market, enabling the steel industry to address the needs of high-quality steel wire rod products in end-use sectors such as automotive and construction. Steel wires are essentially consumed by various end-use industries including construction, agriculture, horticulture, engineering, telecom, power and automobile among others. The construction industry is a major consumer of a wide range of steel wire and allied products. Some of the innovations seen in the recent years have transcended areas such as enhanced finishing operations, durability, high tensile strength, rolling with precision tolerances, and dimension measurements, which have enabled consistency in mechanical properties, finish and dimensions.

Asia-Pacific represents the largest regional market for Steel Wires worldwide, as stated by the new market research report on Steel Wire. Growth in the global steel wire market is also expected to be driven by Asia-Pacific, which is projected to grow at a compounded annual rate of around 5.4% during the analysis period 2009-2017. China, South Korea, India and Indonesia are considered leading markets in the region. Over the last few years, there has been an increased level of investment aimed at revamping the transmission and distribution networks within India. The trend is expected to provide a major boost to the steel wires industry, particularly for conductor wire, cable-armoring wire, stay wires, earth wires and G.I. wires. Further, rapidly expanding construction, automobile and engineering sectors are also likely to promote the demand for LRPC steel wires, and all grades of carbon steel wires. As Indian government plans to increase investment in telecommunications sector, teledensity is expected to rise which in turn would create tremendous demand for steel wires. Demand for wire products in the US, in the short run, is anticipated to remain moderate due to slow demand in transportation, construction, and automotive industries. As several wire products are used in home renovations, new home construction, and infrastructure and commercial construction, steel wire market is expected to pick up momentum over the comingMiesten kengät laajasta valikoimasta