3 major trends driving steel rebar market outlook over 2019-2026
Publisher : Fractovia | Latest Update: 2020-01-06 | Published Date : 2018-02-13Request Sample
Rising demand for residential buildings in developing economies is expected to boost the demand for steel rebars. Over the years, countries like China and India have seen an exponential rise in construction activities due to growth in urbanization. Immigrants migrating to these urban areas have helped multiply these region’s construction industry.
Likewise, the need for better healthcare and educational infrastructure in the Middle East and Africa is expected to facilitate steel industry expansion in a long run. Mentioned below are few of the ongoing trends in the steel rebar industry:
Increasing adoption of deformed and mild steel bars
Deformed steel is expected to witness massive demand owing to its advanced features such as high tensile strength, lower chances of slippage and better bonding ability with cement. Earlier in 2018, the product held a majority share in the steel rebar market and accounted for 75% of overall revenue. Deformed steel rebars are often rolled hot and are deformed via twisting. Its high tensile strength positions it as the best alternative for vertical infrastructure.
As for mild steel bars, they are often used as a tensioning instrument in reinforced masonry buildings. Though these steel bars are frail, they offer remarkable tensile strength. Additionally, it is brittle and can be drilled or welded, and easily be recycled after use.
Technological innovation in the steelmaking sphere
For years, Basic Oxygen Steelmaking (BOF) has positioned itself as the major steelmaking technology in the industry. However, features like high energy efficiency and lower production cost give electric arc furnace (EAF) an edge over traditional BOF. Basically, BOF uses iron ore, both in the form of steel scrap and molten pig iron, as its raw material. After stuffing raw materials in the furnace, oxygen is blown in the melt to oxidize those raw materials into steel. It is then processed to make either mild or deformed steel rod.
Rapid infrastructural developments in emerging countries
Developing economies such as Indonesia, India, Malaysia, Thailand, and China have shifted their focus towards strengthening their infrastructural facilities, in order to fulfill the demands of growing population. Regional as well as private organizations have started to construct new commercial and residential buildings on a large scale. Moreover, China and India are one of the biggest producers of steel in the world. Higher production of steel from these regions is expected to lower the overall steel rebar cost, thus fueling its demand in the coming years.
Apart from this, industry players are heavily investing in several R&D activities geared towards advanced production process which grants cost efficiency. According to reports, Chinese manufacturers are more focused on creating high-strength and earthquake-resistant deformed steel rebar.
Meanwhile, on a global scale, companies like Gerdau SA, ArcelorMittal, Nippon Steel & Sumitomo Metal, Tata Steel, Essar Steel, SAIL, Daido Steel, Hyundai Steel, Acerinox S.A., Mechel OAO, Evraz PLC, Kobe Steel, Commercial Metals Company (CMC) and Jindal Steel & Power Ltd. have help augment the worldwide steel rebar market with innovative product offerings.
