The global steel rebar market is poised to register a healthy growth during the forecast period. The product, commonly known as steel rebars (and in technical terms known as steel reinforcement bars), has numerous applications in the construction industry. It is used in concrete reinforcement for buildings, bridges, and other construction projects. It offers a good combination of various properties such as toughness, high strength, corrosion resistant, fatigue resistance, and ductility.
Steel reinforcement bars ensure durable and safe structures that can be reliable for long period. Concrete is strong enough to withstand compression forces, but tension forces can crack it. They assist concrete to resist tension forces. There are two most common types of processes used for manufacturing of reinforcing steel and they are electric arc furnace (EAF) and basic oxygen steelmaking (BOS). The key difference between the two is feedstock materials used in them. In the BOS process, molten iron is processed with smelting iron ore while EAF normally involves 100 percent usage of scrap metal.
The demand for stainless steel rebars is expected to rise significantly over the coming years. Nickel is widely used in the manufacturing of these products in order to enhance mechanical properties and at the same time improve resistance towards corrosion. The common types of alloys used in the global market includes type 304, type 316, 2304, and 2205.
Rebars are commonly produced using high or mild steel with tensile strength of 250 N/mm2. Materials used consist of 99 percent of iron along with sulphur, manganese, phosphorous, and carbon. The quality of such bars depends upon the proportion of carbon used in it. These bars can be manufactured using steel billets as feedstock and end products are sold in various forms such as round, square-twisted, ribbed, stretched, and twisted and ribbed.
Different uses of the product are primary reinforcement, secondary reinforcement, providing resistance to concrete loads, external tie bars, and reinforced masonry among others.
The market is mainly driven by growth of the construction industry and government investments in a country’s infrastructure development. For instance, in union budget of 2018 to 2019, the Indian government announced allocation of around USD 92.22 billion to push the infrastructure sector of the country. In addition, the government also announced assigning a budget of nearly USD 22.86 billion for the railway sector development in the country.
On the basis of type, the global steel reinforcement bars market can be bifurcated into deformed and mild steel bars. Hot rolled deformed bars are common in RCC structures. With the help of hot rolling, deformation on surface, lugs, or ribs is provided. These bars also help to strengthen bond between materials and reduce slippage in concrete. Typical tensile yield strength for deformed bars is around 40,000 psi.
By application, the market can be segmented as residential & nonresidential buildings and infrastructure. Infrastructure involves telecom, irrigation, road & bridges, airports, railways, power, water supply, oil & gas, and telecom. Steel reinforcement bars are made in various sizes and shapes, which can be easily bent and placed in concrete to form a rigid structure for such infrastructure requirements.
Asia Pacific is likely to be a promising destination for market players in the global arena. Huge investments in the construction sector in countries such as China and India are presenting significant potential for the growth of the market. The construction sector of China contributed around 6.7% in the country’s GDP in 2017 while the number of construction firms reached to more than 300,000 in the same year.
Similarly, in North America, the primary demand for the product is expected to be driven by the U.S. The aging infrastructure of the U.S. is estimated to remain a key factor supporting the growth of the regional market. For instance, as per the American Society of Civil Engineers (ASCE) study of 2017, the infrastructure sector of the U.S. requires an investment of nearly USD 4.5 trillion by 2025.
The key market participants of the steel rebar market include ArcelorMittal, Tata Steel, Essar Steel, Gerdau S.A., Nippon Steel & Sumitomo Metal Corporation, Mechel, Evraz Plc., CMC Commercial Metals, Jindal Steel & Power Ltd., Shagang Group Inc., Acerinox S.A., Posco SS Vina, M.T.C. Mondial Trading Co., Mtc Metal, Steel Authority of India Limited (SAIL); and SteelAsia.
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