STEEL ROUND BARS MARKET ANALYSIS

Global Steel Round Bars Market is valued at US$ 242.9 billion in 2023, and is expected to reach US$ 324.1 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030.

Global steel round bars market is a dynamic and rapidly evolving sector that plays a crucial role in various industries such as construction, automotive, and manufacturing. The market is characterized by the presence of numerous players, both large and small, who compete on the basis of product quality, price, and production capacity. The growth of the market is primarily driven by increasing demand for steel round bars in the construction industry, particularly in developing countries where urbanization and industrialization are taking place at a rapid pace. The automotive industry is another major end user of steel round bars, with these bars being used in the production of various components such as axles, shafts, and gears.

Global Steel Round Bars Market- Regional Insights

• North America: The market in this region is driven by the robust growth of the automotive and construction industries. The U.S. is the leading contributor to the market in this region due to its advanced manufacturing sector.
• Europe: Europe holds a significant share in the global steel round bars market. The growth in this region is attributed to the presence of major automotive manufacturers and increasing demand for steel round bars in the construction industry.
• Asia Pacific: This region dominates the global steel round bars market, and is expected to witness the fastest growth during the forecast period. The growth in this region is primarily driven by the rapid industrialization and urbanization in countries such as China and India.

Figure 1. Global Steel Round Bars Market Share (%), By Region, 2023

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Analyst Viewpoint:

The construction industry across major regions is expected to boost demand for steel round bars. With increasing construction activities globally especially in developing Asian countries, the consumption of steel round bars is expected to increase significantly. Rising automobile production worldwide will also contribute to the consumption of steel round bars. However, volatility in steel prices poses a challenge for manufacturers and can restrain market growth.

Global Steel Round Bars Market- Drivers

• Infrastructure Development: Infrastructure projects, such as construction of roads, bridges, buildings, and public utilities, boosts demand for steel round bars. These projects require high-quality steel round bars for structural components, reinforcing bars, and other applications. Growing investments in infrastructure development, particularly in emerging economies, boosts demand for steel round bars. For Instance, Based on data provided by the World Bank, global investment in infrastructure increased from $3.4 trillion in 2020 to $3.7 trillion in 2022, marking a growth of more than 8%. Leading economies such as China, the United States, India, and European Union nations are taking a prominent role in this concerted effort to enhance and expand contemporary transportation, energy, and social infrastructure networks
• Growing Construction Industry: The construction industry is a major driver of the steel round bars market. Residential, commercial, and industrial construction projects require steel round bars for applications such as beams, columns, foundations, and reinforcement. The ongoing urbanization, population growth, and increasing investments in the construction sector contribute to the demand for steel round bars. For Instance, According to data from the Global Infrastructure Outlook published by the Global Infrastructure Hub in 2021, global infrastructure investment needs over the period from 2016 to 2040 are estimated to be around $94 trillion.

Global Steel Round Bars Market- Opportunities

• Growing Demand for High-Strength and Specialty Steel: There is an increasing demand for high-strength and specialty steel round bars in various industries. For example, sectors such as automotive, aerospace, and energy require steel round bars with specific characteristics, such as enhanced strength, corrosion resistance, or heat resistance. Manufacturers that can provide specialty steel round bars to cater to these niche applications have an opportunity to tap into new market, and increase their market share. For Instance, According to statistics from the United Nations Population Fund, the global urban population is expected to increase by 2.5 billion people by the year 2050, and approximately 90% of this growth will be concentrated in the regions of Asia and Africa.
• Infrastructure Development and Construction Projects: The ongoing global focus on infrastructure development, including transportation networks, smart cities, and sustainable buildings, presents significant opportunities for the steel round bars market. These projects require a substantial amount of steel round bars for structural applications. Companies that can supply high-quality steel round bars in large quantities and meet the specific requirements of infrastructure projects can capitalize on this opportunity. For Instance, According to data from the World Bank, certain projections suggest that the infrastructure deficit in developing countries alone could surpass $15 trillion by the year 2040.

Global Steel Round Bars Market- Trends

• Growing Demand for High-performance Steel: There is an increasing demand for high-performance steel round bars that offer superior strength, durability, and specific properties for demanding applications. This trend is driven by industries such as automotive, aerospace, and energy that require steel round bars with enhanced characteristics like high tensile strength, corrosion resistance, and fatigue resistance. Manufacturers are investing in research and development to produce advanced steel alloys that meet these evolving customer needs. For Instance, Tata Steel witnessed a 15% growth in the production of Ducticor premium steel rounds, known for their enhanced machinability and formability, from 2020 to 2022. This increase was aimed at fulfilling the requirements of the automotive component and engineering sectors, as reported in the Tata Steel Annual Report for 2022.
• Sustainability and Environmental Considerations: The steel industry, including the production of steel round bars, is under increasing pressure to adopt sustainable practices and reduce its environmental footprint. There is a growing emphasis on recycling steel and reducing carbon emissions throughout the manufacturing process. Customers are increasingly inclined to choose steel suppliers that demonstrate a commitment to sustainability, including the use of recycled materials and energy-efficient production methods. For Instance, as per the International Energy Agency, more than 60 national and international climate policies currently make explicit reference to green steel.

Global Steel Round Bars Market- Restraints

• Fluctuating Raw Material Prices: Steel round bars are manufactured using steel billets, which are subject to price fluctuations due to raw material costs, market demand, and global economic conditions. Volatility in raw material prices, particularly for iron ore and scrap metal, can pose challenges for steel manufacturers. Sudden price increases can impact profit margins and make it difficult to maintain competitive pricing in the market.

Counterbalance: Fluctuating raw material prices can pose a significant challenge for businesses. However, there are several strategies that can be used to counterbalance these fluctuations are Hedging, this involves using financial instruments to secure a future price for a commodity. This can help protect against potential price increases.

• Intense Competition and Price Pressure: Global steel round bars market is highly competitive, with numerous manufacturers and suppliers vying for market share. Intense competition can lead to price pressure as companies strive to attract customers and secure contracts. Price wars and downward pressure on margins can pose challenges for profitability, especially for smaller or less vertically integrated companies in the market.

Counterbalance: Intense competition and price pressure can be challenging for businesses, but there are several strategies that can be used to counterbalance these issues are Differentiation, by offering a product or service that is unique or superior in some way, businesses can distinguish themselves from their competitors and potentially command higher prices.

Global Steel Round Bars Market- Recent Developments

New Product Launches

• In 2022, ArcelorMittal, it is a Luxembourg-based multinational steel manufacturing corporation headquartered in Luxembourg City. ArcelorMittal launched a fresh range of round steel bars characterized by their exceptional strength, and thus, catering to the needs of industries like construction and automotive that demand robust and enduring materials.
• Tata Steel launched a new line of stainless steel round bars in 2022. These bars are designed for use in applications where corrosion resistance is required such as in the food and beverage industry. Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group.
• Shri Bhagavati Bright Bars launched a new line of cold-drawn steel round bars in 2022. These bars are designed for use in applications where high precision and surface finish are required, such as in the aerospace industry. Shri Bhagavati Bright Bars Ltd (SBBBL) embarked on their venture in the 1980s, focusing on the production of Cold Drawn Bright Bars and specializing in the manufacture of Hand Pump Shafts.

Acquisition and Partnerships

• In 2022, Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra, partnered with Nippon Steel Corporation a Japan-based steel producer was formed in 2012 by the merger of the old Nippon Steel and Sumitomo Metal. As of 2019, Nippon Steel ranks as the third-largest steel producer globally in terms of volume . This partnership allowed Tata Steel and Nippon Steel to share their expertise in steel round bar production and marketing.
• In 2022, Shri Bhagavati Bright Bars, embarked on their venture in the 1980s, focusing on the production of Cold Drawn Bright Bars and specializing in the manufacture of Hand Pump Shafts, partnered with ThyssenKrupp AG, a Germany-based steel producer specializing in industrial engineering and steel production. This partnership will allow Shri Bhagavati Bright Bars and ThyssenKrupp to collaborate on the development of new steel round bar products.
• In 2022, Valbruna Stainless, founded in 1925 and a leader in the production of Stainless Steels, Nickel Alloys and Titanium Long products, Valbruna is a private company partnered with Outokumpu, a Finland-based steel producer. This partnership allowed Valbruna Stainless and Outokumpu to share their expertise in stainless steel round bar production.

Figure 2. Global Steel Round Bars Market Share (%), By Manufacturing Process, 2023

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Top companies in Global Steel Round Bars Market

• ArcelorMittal
• Nippon Steel Corporation
• POSCO
• Tata Steel
• Baosteel Group Corporation
• JFE Steel Corporation
• Thyssenkrupp AG
• Nucor Corporation
• Hyundai Steel
• SAIL (Steel Authority of India Limited)
• Outokumpu Oyj
• Gerdau S.A.
• SSAB AB
• Acerinox S.A.
• Tenaris S.A

Definition: Steel round bars are cylindrical bars that are made from steel with a circular cross-section. These are widely used in various industries such as construction, automotive, manufacturing, and infrastructure for applications requiring strength, durability, and versatility. Steel round bars are used for structural components, shafts, fasteners, and other purposes, providing robust and reliable solutions for demanding applications.