Long Steel Products Market Size, Share & Trends Analysis Report By Product (Rebars, Wire Rods, Sections, Tubes), By End-use (Building & Construction, Automotive & Aerospace, Railways & Highway), By Region, And Segment Forecasts, 2024 - 2030

Long Steel Products Market Size & Trends

The global long steel products market size was valued at USD 705.53 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.1% from 2024 to 2030. The market is likely to be driven by increasing demand for long steel products from construction and infrastructure industry across the globe. Huge demand coming from building and construction industry is due to the growing need for residential properties with the rise in population. Rise in infrastructure projects globally such as metro projects, railway bridges, highways, and mega city projects have contributed to long steel products’ demand in construction.

The U.S. government has taken several initiatives to enhance the production of the product. One such initiative is imposition of tariffs on imports from countries such as Brazil, Russia, and Mexico, which has helped government to boost the business of local manufacturers and encourage investments (both domestic as well as foreign investments) in U.S. steel industry. Additionally, the government has invested in infrastructure development projects for the construction of highways, bridges, and railways that require significant volumes of long steel products.

These products are used for providing structural support. They are affordable and easily available. They are versatile, durable, offer high strength, and are 100% recyclable. They can be used in warehouses, high-rise buildings, industrial buildings, bridges, etc. Rising investments in construction of smart cities, industrial, and residential buildings drive growth of the market. Ongoing Russia-Ukraine conflict has significantly impacted the situation, as they are one of the primary producers of steel and conflict has affected global supply chain.

The rise in energy prices and sea freight rates have also played a significant role in surging costs of rebar globally. These factors have led domestic manufacturers to raise their prices. Fluctuations in raw material prices have an impact on costs of finished products. Significant geopolitical events, demand variations, and raw material price surges over time have slowed growth of market worldwide. The fluctuations in global costs act as restraints for growth of the market.

Market Dynamics

Merchant bars are used in production of large machines, pipes, farm equipment, and other heavy equipment while wire rods are used for development of springs, bearings, chains, wire meshes, cables, and ropes, as well as wire fencing. These components are used in different applications in different industries such as machine engineering, energy, automotive, and chemicals. Thus, increasing investments in aforementioned industries are expected to augment consumption of long steel products in them during forecast period.

Product Insights

Rebars held the largest revenue share of over 34.0% in 2023 and are expected to continue their dominance over the forecast period due to growing construction activities. For instance, in India, various social programs are being carried out by the government, including Pradhan Mantri Awas Yojana, for developing new housing units for the masses. Under Pradhan Mantri Awas Yojana, construction of approximately 12.3 million houses has been sanctioned till Feb 2023.

The wire rods segment is substantially gaining traction with an estimated CAGR of 5.9% worldwide over the forecast period. Apart from construction and automotive, wire rods have a wide range of applications in various other industries such as aerospace, railways, and energy. They are commonly used as raw materials for the production of various types of wires such as low-carbon, high-carbon, and alloy wires.

These wires are used in applications such as fencing, barbed wire, cable, and welding electrodes. These rods are also used to manufacture fasteners such as screws, nails, and bolts that are used in manufacturing and construction applications. In electrical industry wire rods are used in production of electrical wires, cables, and conductors that are used in transmission and distribution of electrical power.

Production of steel tubes is a critical aspect for many industries, including oil and gas, automotive, construction, and aerospace. Demand for tubes is increasing globally owing to increasing application in end-use industries. The tubes are in high demand because they are versatile and have a wide range of applications across various industries. Some of major industries that require them in large quantities include construction, oil & gas, automotive, manufacturing, and aerospace, among others.

End-use Insights

Based on end-use, building and construction was the largest segment in 2023, accounting for a volume share of around 79.0%. Long steel products are extensively used in real estate sector for different applications. Steel rebar binds well with concrete. It has a similar thermal coefficient as that of concrete. As such, it is mostly used for development of building foundations, slabs, and dams.

With overall increase in the GDP of developing countries such as India, Indonesia, and Mexico, growth can be observed in real estate, railroads, ports, airports, and electricity sector. In emerging economies like Brazil, South Africa, and Egypt, demand for low-cost houses is increasing due to a surge in disposable income of citizens and easy availability of housing loans. Thus, the rise in construction industry is aiding market growth.

Automotive and aerospace is another vital segment of the market. Automobiles with four-wheel chassis use long steel sections while two-wheelers employ steel pipes with high thicknesses. According to Organisation Internationale des Constructeurs d'Automobiles (OICA), global production of vehicles increased by 3.1% in 2021 compared to 2020. Increase in production of vehicles will have a significant impact on the market.

Further, product demand is propelling in aerospace industry due to need for lightweight, strong, and cost-effective materials that can be used in safety-critical components. In addition, increased use of composite materials is further propelling demand for these products in aerospace industry. Long steel products, such as steel bars, tubes, and wire, are used in production of composite parts to provide added strength and durability.

Regional Insights

Asia Pacific held the largest revenue share of over 66.0% in 2023 of the global market. The segment growth is anticipated to spur owing to rising population and increasing infrastructural developments in this region. Further, growth in other end-use industries such as automotive, railways, and highways is further aiding demand for the product.

In terms of revenue, Asia Pacific is projected to expand at a CAGR of 5.7% from 2024 to 2030. Some of the major growth drivers for construction industry in Asia Pacific are development of smart cities, industrial corridors, data centers, cold storage, and increasing demand for commercial space. The construction industry growth is closely linked to market growth owing to extensive use of rebars, sections, and wire rods.

Growing demand for steel products in Southeast Asia is encouraging domestic manufacturers to augment their production and reduce their dependence on imports. The region, which witnessed a surge of 41% in imports of finished products in 2021 from 2020, witnessed a decline in 2022. According to SEASI, finished steel imports in Southeast Asia reduced by 4.3% in first half of 2022 dropping down to 21.9 million tons, whereas exports increased by 7.2% reaching 11.1 million tons.

U.S. is the second-largest producer of long steel products in the world. Long steel products also have significant demand in aerospace industry. They are used as raw materials for manufacturing critical components of aircraft and spacecraft, including landing gear, engines, and exhaust ducts. Surge in aircraft orders is anticipated to fuel demand for these products in Europe over forecast period as key aircraft manufacturers such as Boeing and Airbus are based in this region.

Key Companies & Market Share Insights

The market growth has pushed key players to opt for strategic partnerships. For instance, in June 2022, Nucor Corporation entered into a strategic agreement to acquire Sovereign Steel Manufacturing LLC and Summit Utility Structures LLC, manufacturers of steel structures and metal poles for highway signage and utility infrastructure.

To remain in competition, key companies enter into long-term supply contracts with end users. For instance, in July 2022, Arcelor Mittal announced acquisition of the HBI plant of Voestalpine for USD 1 billion. The HBI plant is located in Texas in U.S. Through this acquisition, Arcelor Mittal aims at adding 2 million tons of HBI capacity to its manufacturing portfolio. This is anticipated to help former in lowering carbon emissions during its operations.

Long Steel Products Market Report Scope

Global Long Steel Products Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global long steel products market report based on product, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Rebars

  • Wire Rods

  • Sections

  • Tubes

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Building & Construction

  • Automotive & Aerospace

  • Railways & Highway

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Mexico

    • Canada

  • Europe

    • Germany

    • France

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • Philippines

    • Singapore

    • Thailand

    • Malaysia

  • Central & South America

    • Brazil

  • Middle East

    • Bahrain

    • Kuwait

    • Oman

    • Qatar

    • Saudi Arabia

    • UAE

  • Africa

    • Ethiopia

    • Tanzania

    • Mozambique

    • Rwanda

    • Zimbabwe

    • Kenya