Prestressed Steel Wire Strands Market Share

Prestressed Steel Wire And Strands Market Overview

The global Prestressed Steel Wire And Strands Market is projected to register healthy growth during the forecast period, 2022–2030. The market was valued at USD 3,417.7 in 2021 and is projected to register a CAGR of 4.79% to reach USD 5,118.4 million by the end of 2030.

A prominent factor driving the growth of the global market is the rising demand for prestressed steel in the building and construction industry. Prestressed steel wire and strands offer superior properties such as high strength, bendability, good resistance to corrosion, ductility, durability, and low relaxation, driving the demand for prestressed steel wire and strands in the construction industry. The increasing demand for epoxy-coated prestressing steel strands in various end-use applications such as railroad industry is expected to boost the demand for prestressed steel strand and, hence, favor the global market's growth in the years to follow. Likewise, increasing use of prestressed steel strands for energy sector in various applications, including wind turbines, nuclear reactor shields, and liquefied natural gas (LNG) tanks, are projected to propel the market growth during the review period. Furthermore, the growing demand for energy-efficient buildings is projected to create lucrative opportunities for players operating in the global prestressed steel wire and strands market.

COVID-19 Impact on the Prestressed Steel Wire And Strands Market

COVID-19 it also severely affected the global economy and financial markets, in addition to the public health crisis. Significant reductions in income, a rise in unemployment, and disruptions in the transportation, service, and manufacturing industries are few of the consequences of the outbreak of COVID-19 and the regulations imposed to mitigate its spread. The pandemic has resulted in proactive international actions required to save lives as well as to protect economic prosperity. The significant economic impact has already occurred across the globe due to reduced productivity, loss of life, business closures, trade disruption, and decimation of the tourism industry. The global pandemic threatened the economic recoveries and thus poses a problem for smooth functioning in all the markets. The pandemic plunges most countries into recession in 2020, with per capita income contracting in the largest fraction of countries globally since 1870. Advanced economies were projected to shrink by 7%. According to the United Nations, the global economy is projected to contract by around 3% or more instead of registering 2.5% growth projected by the World Economic Situation and Prospects report 2020.

Most raw materials suppliers in this market had to shut down their operating facilities due to the outbreak of COVID-19. In response to combat the virus, the key suppliers shifted their focus towards offering relief in the pandemic. COVID-19 disrupted Chinese industrial activity and led to the temporary closure of factories and construction sites across the country, with demand from the steel sector declining as much as 30-10% in February 2020, according to Focus Economics. Whereas manufacturers in this market have decreased their production capacities owing to the decline in demand from the end-use industries, reduced prices, and disruptions in the supply of raw materials. The outbreak has severely impacted the demand from end-use industries, which has resulted in a decline in the production of prestressed steel wire and strands. Moreover, players are focused on COVID relief and is taking action for the same.

Market Dynamics

Drivers

• Demand for prestressed steel in the construction projects: The global prestressed steel wire and strands market is driven by the increasing demand for prestressing steel in major end-user applications such as railroad industry, construction equipment, bridges and flyovers, energy, and others. Prestressing steel is a high-strength steel used in the form of wire, rod, bars, strand, etc. to prestressed concrete (PC). The demand for prestressed steel is growing at a significant rate owing to its superior properties such as high strength, adequate ductility, bendability, which is required at the harping points and near the anchorage, high bond, which is required for pre-tensioned, low relation to reduces losses, resistance to tension, and most important, less corrosion. Prestressed steel is widely used in construction for bridge building, industrial and residential construction, railway construction, and wind power stations.

Restraints

• Fluctuating prices of raw materials and related regulations: Prestressed steel wire and strand is produced from high-carbon steel raw materials, and steel is produced from iron ore, which is converted into pig iron for steelmaking. According to IHS Markit, the steel prices witnessed a significant decline in December 2019, driven by a seasonal decline in demand and supply recovery by steel majors. Since then, the prices have been fluctuating between USD 520 per IB and USD 749 per IB from December 2019 to December 2020 (pre-COVID period). During the COVID period (January 2020-April 2020) as well, steel prices were volatile within the same pre-COVID range but did not witness any major fall as seen in prices of other metals and minerals steel products.

Opportunity

• Use of prestressed steel strands for energy purposes: Prestressed steel strands are made of high carbon steel wire rods SWRS82B and SWRH82B-2 for energy application, consisting of unique characteristics such as steady modulus of elasticity, high tensile strength, low relaxation, relieving stress, and high adhesion with concrete. Prestressed steel strands are primarily used in the energy sector for various applications such as wind turbines, nuclear reactor shields, and liquefied natural gas (LNG) tanks. The process of prestressed steel strand is continuously drawn with large deduction stranding and stabilization treatment to meet the standards including EN10138, BS 5896, and GB/T5224, etc.

Trends

• Growing demand for energy-efficient buildings: Global warming is severely affecting the environment. Energy efficiency in construction is one of the best ways to mitigate this issue. A significant decrease in GHG emissions can be noticed by reducing the number of natural resources, land, raw materials, and energy used in and for creating buildings. Energy-efficient buildings are high-performing buildings and environmentally friendly structures. The prestressing steel strand coated with epoxy-coated is a cost-effective and time-saving product for constructing concrete projects.

Segmentation

By Product

• Wire


• Strand

By Coating Type

• Uncoated


• Galvanized


• Epoxy Coated


• HDPE Coated


• Others

By Application

• Railroad Industry


• Construction Equipment


• Bridges & Flyovers


• Energy


• Others

By Region

• North America


• Europe


• Asia-Pacific


• Latin America


• Middle East & Africa

Regional Analysis

Based on country, the global prestressed steel wire and strand market has been divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific region accounted for the largest market share of 40.65% in 2020. Europe captured the second-largest market share of 19.49% in the same year.

The increasing demand for prestressed steel wire and strands from the construction industry in North America is the major driving factor of the prestressed steel wire and strand market. The US is a major contributor to the market in the region. The US is the world's third-largest steel producer, accounting for approximately 5.4 percent of global crude steel output, as well as one of the largest steel users. Prestressed Steel demand in the automotive, construction, and oil and gas industries has soared, benefiting the business.

Prestressed steel wire and strand is largely supplied by European countries such as the UK and Germany. In 2020, the steel sector employed over 326,400 people across the European Union, with Germany employing over 83,200 people. This was more than double the employment in the steel industry in Italy. The growing demand for prestressing steel from the automotive industry in the region is likely to boost the demand for the prestressed steel wire and strands market. This, in turn, is expected to accelerate the growth of the prestressed steel wire and strand industry in the region over the forthcoming years.

China produces the most prestressed steel wire and strands in Asia-Pacific, followed by Japan, India, and Korea. China has traditionally been the primary engine of global prestressed steel wire and strand sector growth, projected to continue in the coming years. Any change in the country's steel production impacts worldwide prestressed steel wire and strand trading. The demand for prestressed steel wire and strands in China is primarily driven by increasing urbanization and industrialization, as well as strong GDP growth that outpaces that of most western countries.

Prestressed steel is widely utilized in various industries, including automotive, construction, infrastructure, energy, and others. In important Latin American country markets, the building sector is predicted to restart in 2021. Brazil, Chile, Colombia, and Peru are among the countries expected to rise. According to the construction database, there are now 534 hotel projects under construction in Latin America, with Mexico leading the way. This, in turn, is likely to boom the growth of the prestressed steel wire and strand market in the region over the forthcoming years.

Due to the country's increasing construction industry, Saudi Arabia has the largest share of the Middle East & Africa. The government's significant investments have been a major driver of the country's primary construction expansion. This, in turn, is expected to boost the growth of the prestressed steel wire and strand market.

Competitive Landscape

The global prestressed steel wire and strands market is characterized by the presence of many global, regional, and local players. The market is fragmented, with all the players competing to gain maximum market share. High demand in the cosntruction and infrastucture industry and several advantages offered by prestressed steel wire and strands are the key factors influencing global market growth. The vendors compete based on cost, brand identity, product quality, and availability and reliability of the products. It is crucial for vendors to provide cost-effective and high-quality products that adhere to the requirements of the end-use to compete in the market. To establish their market position, the key players are expanding their production bases.

Key players in the global prestressed steel wire and strands market include Baekert (Belgium), ÇELİK HALAT ve Tel Sanayii A.Ş (Turkey), DNA PC Strand (Turkey), DWK Drahtwerke Köln GmbH (Germany), FAPRICELA - Indústria de Trefilaria, S.A. (Portugal), Henan Hengxing Science & Technology Co., Ltd. (China), Hjulsbro Steel AB (Sweden), Hubei Fuxing New Material Technology Co.,Ltd (China), Insteel Industries, Inc. (US), KISWIRE Ltd. (South Korea), Maklada (Tunisia), NEDRI Spanstaal BV (Netherlands), ORI Martin Group (Italy), Pretensados Del Norte SL (Spain), SBN Runowo Sp. z o.o. (Poland), Zhangjiagang Xinhua Prestressing Steel Strand Co.,Ltd (China), CB Trafilati Acciai S.P.A (Italy), Sumiden Wire Products Corporation (US), Trefil Union (France), TYCSA (Spain), Usha Martin Limited (India), voestalpine Group (Austria), Southern Steel Berhad Group (Malaysia), Mechel (Russia), AL ITTEFAQ STEEL PRODUCTS CO. (Saudi Arabia), ArcelorMittal (Luxembourg), and The Siam Industrial Wire Company Limited (Thailand).

Some of the key developments include:

• In September 2020, Bekaert and Almasa have agreed on the merger of Proalco SAS (a subsidiary of Bekaert) with Almasa SA's steel wire operations, both of which are based in Colombia. The partnership aims to create value for the global market by offering new steel wire products and solutions.


• In December, 2019 Bekaert and AGRO (a world-leading manufacturer of high-quality innerspring) established a joint venture to develop and produce high-end steel wire innerspring systems. The joint venture aims to co-develop, manufacture, and promote superior values mattress and upholstery manufacturers in Colombia, Central America, and the Caribbean.


• In March 2020, Insteel Industries, Inc., through its subsidiary, acquired certain assets of Strand-Tech Manufacturing (STM), which operated a PC strand manufacturing plant in Summerville, SC, for USD 19.4 million. This acquisition will strengthen the company's competitive position by leveraging its operating costs and optimizing its manufacturing footprint.

Report Overview

The prestressed steel wire and strands market is segmented by type, application and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global prestressed steel wire and strands emerging and fast-growing segments, regions, and countries.

Objectives of the Study

• To get a comprehensive overview of the global prestressed steel wire and strands market


• To get wide-ranging information about the key factors driving the market and market opportunities


• To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments


• To gain insights about the key country/region in which the market is growing

Intended Audience

• Industrial sector


• Automotive Industry


• Pakaging sector