Australia Steel Rebar Market Size, Share & Trends Analysis Report By Application (Construction, Infrastructure, Industrial), By Region (New South Wales, Victoria, Queensland), And Segment Forecasts, 2022 - 2030

Report Overview

The Australia steel rebar market size was valued at USD 1.40 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 2.7% from 2022 to 2030. Growth in non-residential construction is projected to remain a key driver for the regional steel rebar market. Additionally, expansion of engineering construction and growth in the residential construction sector are likely to support the steel rebar demand in the country.

Australia has strong infrastructure pipeline for the coming years, which is likely to act as a contributing factor for the market growth. Some of the projects in the pipeline include ACT Light Rail Stage 2, 2A and 2B, Adelaide Riverbank Arena, Arrowsmith Hydrogen Project, Asian Renewable Energy Hub, Ballarat Base Hospital Redevelopment, Bankstown Lidcombe Hospital, Barwon Heads Road Duplication, Battery of the Nation, and Beaches Link, among others.

In 2021, steel prices have increased sharply. It has increased from USD 900.8 per ton in 2020 to USD 1064.8 per ton in 2021. The market demand was low in 2020, amidst the COVID-19 pandemic. This impacted the steel rebar prices, affecting its decline. With the re-opening of economy and industrial sectors, there was a rapid surge in construction activities, wherein the demand outpaced supply. This benefited the price action of steel rebars in 2021.

State programs associated with affordable housing such as The Big Housing Build are likely to drive the demand for steel rebars in the residential construction industry. The program intends to achieve the construction of around 1,100 and 5,000 new homes by 2021 and 2022 respectively. Overall, there are plans to construct 12,000 new dwellings at an investment of USD 5.3 billion under this program.

Application Insights

The construction segment accounted for a revenue share of 49.8% in 2021 in the Australia steel rebar market and is likely to grow at a lucrative pace in the coming years. Construction of new houses plays a vital role in the growth of the steel rebar market. Rebar is a key material used in the reinforcement for floor slabs, walls, monolithic sections, foundations, brickwork, and other works such as elements of roofing, including balcony parapet and ventilation ducts.

In recent times, annual approval of new houses observed sluggishness in Australia. This was fueled by the spread of the omicron variant of COVID-19, which resulted in shortage of labors and building materials. As per the Australian Bureau of Statistics, building approvals in residential segment observed a fall of 7.7% in November 2021, compared to the same period in the previous year.

The industrial application segment in Australia has been growing at a steady rate, mainly driven by low interest rates and strong investment in distribution and warehousing facilities. Also, upswing in factory construction benefited the growth of the segment in the recent past, despite weak performance of downstream manufacturing companies. However, the segment is projected to grow at the lowest CAGR over the forecast period, owing to decline in factory construction in the long run.

Regional Insights

New South Wales accounted for over 29.0% share of the regional market in 2021, in terms of volume. New South Wales (NSW) observed a decline in its construction and infrastructure industry in 2020, as the COVID-19 pandemic substantially disrupted supply chains and affected the availability of laborers. The local government support has benefited the construction industry in the post-pandemic period. For instance, in October 2021, the New South Wales government announced a Regional Housing Package worth USD 35 million.

Investments in infrastructure are projected to remain one of the key drivers for the growth of the Victorian steel rebar market. For instance, in its 2021’s infrastructure plan, the Victorian government allocated funds worth USD 144 billion for new and existing infrastructure in pipeline. This investment will address current and future needs, providing support to the construction, engineering, and industrial sectors involved in building new infrastructure.

Queensland is set to host the Olympics and Paralympics games in 2032, which is expected to attract huge investments in the coming years, thus benefiting the construction and infrastructure sectors. This is expected to push the demand for steel rebars in the region. These events are likely to create over 120,000 jobs in the country. In line with this event, The Council of Mayors South East Queensland are likely to invest huge funds in infrastructure before 2032.

Key Companies & Market Share Insights

There is only one notable player, Infrabuild, operating at the country level for steel rebar production. Along with local production, imports are the main source for supplying rebars in Australia. At its manufacturing sites in New South Wales and Victoria, Infrabuild operates two electric arc furnaces along with four rod and bar rolling mills. Steel billets are procured from Liberty Primary Steel. Infrabuild and Liberty Primary Steel are integrated producers in the Australian long steel products industry.

In 2018, the Anti-Dumping Commission of Australia, on the request of InfraBuild, initiated an investigation to find whether the steel rebar exported at dumped prices are causing damage to the Australian industry producing like goods. The commission found out that the steel rebar industry of the country faces several problems as there is no product differentiation and the exporting companies sell their products at low prices in Australia. Some of the prominent players in the Australia steel rebar market include:

• InfraBuild Pty Ltd.

• NEUMANN STEEL PTY LTD

• Best Bar

• Australian Reinforcing Company

• Duferco International Trading Holding Australia

• Ausreo

• Commercial Metals Company (CMC)

• Reozone

• Southern Steel Group

• Apex Steel

Australia Steel Rebar Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the country and regional levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the Australia steel rebar market report on the basis of application and region:

• Application Outlook (Revenue, USD Million; Volume, Kilotons, 2017 - 2030)

  • Construction

  • Infrastructure

  • Industrial

• Regional Outlook (Revenue, USD Million; Volume, Kilotons, 2017 - 2030)

  • New South Wales

  • Victoria

  • Queensland

  • South Australia

  • Western Australia

  • Rest of Australia