NEW YORK, Jan. 24, 2023 (GLOBE NEWSWIRE) -- A recent IndexBox report on the US steel wire market provides some interesting insights.
US Steel Wire Market Forecast
The US steel wire market is estimated at $9.4B in 2022 and is set to reach $11B by 2030, rising at a CAGR of 2.0% during that period. The growth is to be driven by rising demand from the construction, automotive, and engineering industries. The construction sector is the largest end-user of steel wire, accounting for over 50% of the total consumption, followed by the automotive one (approx. 30% of the total figure). The electrical and electronics industry uses steel wire for purposes such as wiring and circuit boards, while the machinery sector applies it for the production of bearings and gears.
The US construction sector is expected to grow at a CAGR of more than 3% from 2022 to 2030, due to the increasing need for residential and commercial real estate amid an expected rise in disposable incomes and expansion of the retail, healthcare, and hospitality sectors.
With increasing demand for electric vehicles, the automotive industry in the US is projected to grow at a CAGR of more than 2% from 2022 to 2030. The electric vehicle market is expected to expand due to government incentives and regulations regarding emission reduction targets.
Current State of Steel Wire Market
Currently, the US steel wire market is struggling. The country has been hit hard by the coronavirus pandemic. This has caused a decrease in demand for steel products, which has led to a decrease in prices in 2020.
In the last two years, the market saw a recovery in value terms, as steel wire prices surged by more than 20% amid the global economic crisis and accelerating inflation. The average export price for steel wire from the US totaled $4,398 per ton in 2022.
The trade tensions between the US and China is one of the key challenges faced by companies in the steel and steel wire market. The tariffs imposed by both countries have led to an increase in the price of steel, which has put pressure on margins. In addition, the Chinese market is a key destination for US exports, and any further deterioration in relations could lead to a decline in demand.
Raw material costs have also been on the rise in recent years. This is due to increased demand from China and other emerging markets. As a result, companies have had to pass on these higher costs to their customers, which has led to some price resistance.
The production of steel wire involves a number of processes, each of which can result in greenhouse gas emissions. The primary sources of CO2 from steel wire production are the combustion of fossil fuels used to power the manufacturing process and the release of gasses from the chemical reactions.
To minimize the greenhouse gas emissions associated with steel wire manufacturing, some different technologies can be employed. For example, using electric arc furnaces rather than blast furnaces can significantly reduce CO2-output, as can using scrap steel as a raw material instead of virgin ore. Waste heat from the manufacturing process can also be recovered and used to power other industrial processes.
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Gerdau Ameristeel Corporation, Nucor Corporation, ArcelorMittal, Bekaert, Celsa Group, Hyland Steel Inc., Schnitzer Steel Industries Inc., U.S. Steel Corporation, Charter Steel, National Wire & Cable Company, Ansteel Group Co., Steel Dynamics, Asia Pacific Wire & Cable Co.
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