Steel Rebar Market Growth Outlook with Industry Review and Forecasts 2019-2024

Owing to its massive deployment across numerous noteworthy business verticals along the likes of automotive, manufacturing, and construction, steel rebar market has grown by leaps and bounds in the recent times. Moreover, a robust steel production has been increasingly viewed as a vital indicator of the overall economic sturdiness of a nation. This has been particularly true pertaining to the emerging economies like China and India in the Asia Pacific region.

Citing an instance to validate the aforementioned statements is that of the recent investment bid undertaken by the India based steel rebar market giant, Jindal Steel and Power Limited (JSPL). At a Global Investors Summit held at Jharkhand, the company announced that it plans to invest around Rs.2000 crore in the state within the next few years to augment the capacity of its steel plant at Patratu, Jharkhand. With the current output of the facility standing at around 1.6 million tons per annum, JSPL aims to increase the capacity up to 6 million tons over the ensuing years.

Speaking in the similar context, China produced approximately 823 million tons of steel in 2014 which accounted for almost 50 percent of the total steel production worldwide, as per the statistics published by the World Steel Association. With a 5.7 per cent jump in its crude steel output during the first 11 months of 2017, the Chinese steel manufacturers fraternity has defied the anticipated slowdown that was predicted to be caused by state-mandated factory closures and stringent regulatory guidelines to safeguard environment. This significant rise in the production of steel would undeniably have repercussions for the broader economy of China and more so for the overall steel rebar market in the forthcoming years.

Over the past two decades, the growth outlook of the worldwide steel rebar market has witnessed a renewed optimism. An upsurge in smart city projects across various nations coupled with massive budgetary outlays for infrastructure spending on highways and public utilities have propelled the steel rebar industry in the recent years. Moreover, the prominent companies operating in the steel manufacturing business have been essentially focusing on investing heavily toward expanding their production capabilities to meet the burgeoning demand for steel rebars from various business verticals.          

Smart Cities initiative, in particular, has emerged as one of the most significant programs of the Indian government that would aim for a sustainable and high-quality infrastructure, connectivity, and mobility. The effective implementation of this initiative has underlined the necessity of steel structures for drainage, sewage, and transmission to ensure zero wastage and less maintenance.

Considering the aforementioned instances, it would be quite apt to state that the growth potential of the Asia Pacific steel rebar market undoubtedly appears to be highly promising. In fact, as per a research report compiled by Global Market Insights, Inc., Asia Pacific region apportioned more than 65 percent of the total revenue share of the overall steel rebar industry in 2016.

With the major firms concentrating toward product upgradation and capacity expansion plans coupled with enormous investments by numerous regional governments, the steel rebar market share is bound to proliferate at a commendable pace. The rise in the construction of myriad steel-based structures in ambitious projects and the surging utilization of steel across numerous business domains would drive the growth trajectory of steel rebar market share which is estimated to surpass an overwhelming valuation of USD 170 billion by 2024. 

In addition to plant expansion, major behemoths in steel rebar industry have also been adopting the standard growth tactic of M&As to consolidate their positions. Merely a few days back for example, Gerdau and Optimus Steel LLC signed an agreement regarding the sale of Gerdau’s wire rod mill and two other downstream applications. Optimus plans to pay around USD 92.5 million for this acquisition, post which its product portfolio and production capacity are likely to witness an ascent.

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