Steel round bars find wide application in the production of precise steel components used across industries including automotive and construction. They offer benefits such as uniform cross-section, consistent material properties and ease of machining as per product requirements. Steel round bars are versatile and enable fabrication of critical parts and sub-assemblies for vehicles and infrastructure development. Need for high strength, wear-resistant and durable products has boosted demand for steel round bars over the years.
The global Steel Round Bars market is estimated to be valued at US$ 242.09 billion in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the steel round bars market is the increasing automotive production, mainly in Asian countries. Automotive manufacturers rely heavily on steel round bars for manufacturing critical under-the-hood components, suspension parts, drive shafts and other structural elements. Asia Pacific accounts for over 50% of global vehicle production led by China, India, Japan, and South Korea. Additionally, initiatives by governments in the region towards development of domestic automotive sectors will further propel steel round bars demand over the coming years.
Another major trend is the ongoing shift towards lightweight vehicles for improved fuel-efficiency. Steel round bars producers are focusing on developing advanced high strength steel grades to facilitate weight-reduction of automotive components without compromising on strength and performance. Adoption of lightweight steel variants will support growth of the market.
Threat of new entrants: The threat of new entrants in the steel round bars market is moderate. High initial capital investment and economies of scale of existing players create entry barriers for new players.
Bargaining power of buyers: The bargaining power of buyers in the steel round bars market is high. Buyers can negotiate lower prices due to availability of substitutes and fragmented suppliers structure.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Well established suppliers have strong bargaining power due to having access to raw material and scale of operations.
Threat of new substitutes: The threat of new substitutes is low. Steel round bars are used in various end-use industries which limit the threat from substitutes like aluminum.
Competitive rivalry: The competitive rivalry in the steel round bars market is high. The market is consolidated with presence of major global players focusing on competitive pricing and product innovation.
The global steel round bars market is expected to witness high growth.
Regional Analysis: Asia Pacific dominates the global market and is expected to continue its dominance over the forecast period. China holds the major share in the Asia Pacific steel round bars market owing to the presence of major steel producers and demand from end-use industries like construction and automotive.
Key players operating in the steel round bars market are 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. These key players are focusing on partnerships, acquisitions and new product launches to gain competitive advantage. For instance, in 2021 ArcelorMittal partnered with Sany Group to establish steel rod plants in China.
- Source: Coherent Market Insights, Public sources, Desk research
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