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 dependant 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. The global steel industry has been marked by excessive capacity in industrialized nations and the introduction of novel and better production methods. Steel wire industry in the developed nations is boosted by stimulus packages issued by governments to revive the construction and manufacturing industries. 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 as the demand for steel wire from end use industries plummeted. The value sales of global steel wire industry fell in 2008, as compared to the previous year, and plummeted further exhibiting a negative growth rate in 2009. The developed and mature western markets of North America Europe and Japan were the worst hit recording declines during the period. In the US, consumption of steel in automobile industry witnessed major erosion, mainly on account of the economic slowdown. 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.
via Global Steel Wire Market to Reach US$25.4 Billion by 2015.