U.S. Steel Merchant And Rebar Market Size, Share & Trends Analysis Report By Product (Merchant Bar, Rebar), By Application (Construction, Infrastructure, Industrial), And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. steel merchant and rebar market size was valued at USD 9.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2020 to 2027. Increased focus on infrastructure development through public & private investments in the U.S. is likely to drive the market in the long run. In 2020’s economic budget, the U.S. government announced plans to invest nearly USD 1 trillion for the improvement of infrastructure under the long-term surface transportation reauthorization bill. Products, such as rebars and merchant bars, are used in the construction of highways, bridges, water systems, warehouses, airports, etc.

The outbreak of COVID-19 has brought economic disruptions in the U.S. Governments and various businesses have taken essential steps through the reduction of personal interactions to mitigate the risks associated with it. However, due to the halting of various business activities and weak performance of end-use sectors, the product demand is expected to witness a decline of 5.6% in 2020.

However, in the long run, the market is expected to grow with moderate momentum. As per the Congressional Budget Office, the degree of social distancing is projected to decline by over 60% in the second half of 2020 from April 2020 peak. This, in turn, is likely to assist in social activities and increase production in the manufacturing industry.

Also, the long-term outlook of the U.S. economy looks positive and economic output is anticipated to observe a growth of 2.1% from 2025 to 2030. This is projected to push the demand for building materials in the construction sector over the forecast period.

Product Insights

Rebars was the largest segment in 2019 and accounted for a volume share of over 60% in 2019. Mild and deformed are two types of rebars, which are used in construction applications to provide reinforcement and support to structures. Mild steel rebars are now increasingly replaced with deformed ones, as these products exhibit high strength and are useful in increasing the lifespan and strength of construction structures.

Deformed steel rebars have better malleability and ductility, toughness, high yield strength, corrosion, and earthquake resistance. These products are economical and have a wide range of applications, including industrial structures, commercial and residential buildings, and bridges, among others.

In terms of revenue, the merchant bars segment is projected to witness a growth rate of 4.5% from 2020 to 2027. Merchant bars include angles, channels, flats, rounds, and beams and are used in structural applications in the construction sector as well as in automotive, shipbuilding, rail, appliances, heavy machinery, mining, agriculture, tools, and original equipment manufacturing.

Application Insights

The construction application accounted for a revenue share of over 41% in 2019. Short-term estimates by the American Institute of Architects indicate an 11% y-o-y decline in non-residential construction in the U.S. The demand for merchant & rebars is expected to decline in 2020 on account of the halting of construction activities in the first half of 2020 due to the widespread outbreak of COVID-19.

However, the market is likely to witness moderate recovery in the second half of 2020 on account of acceleration in residential construction activities. For instance, in July 2020, total housing production in the U.S. increased by 22.6% from the previous month. This was also supported by low interest rates and an increase in the number of buyers in low-density areas.

The development of infrastructure plays a crucial role in the economic growth of the U.S. The Department of the Treasury in the U.S. carried out a study of 40 key proposed infrastructure projects to substantiate the economic importance of infrastructure. As per this study, the completion or availability of these 40 projects can provide economic benefits of up to USD 500 billion to 1 trillion to the country.

Key Companies & Market Share Insights

Key players in the market are devising strategies to enhance their capacities through mergers & acquisitions. For instance, in July 2020, CMC Steel completed the acquisition of AZZ’s rebar business. AZZ produces galvanized rebar, which is known as ‘GalvaBar’. This product is produced using galvanization of zinc coating on the final product. This move is projected to assist the former to improve its market share in concrete reinforcement. Some of the prominent players in the U.S. steel merchant and rebar market include:

• Gerdau S.A.

• Nucor

• CMC Steel

• Steel Dynamics Inc.

• Schnitzer Steel Industries, Inc.

• Nippon Steel Corp.

• JFE Steel Corp.

U.S. Steel Merchant And Rebar Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. steel merchant and rebar market report based on product and application:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Rebars

  • Merchant Bars

    • Angles

    • Channels

    • Rounds

    • Flats

    • Beams

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Construction

  • Infrastructure

  • Industrial