U.S. Steel Rebar Market Size, Share & Trends Analysis Report By Application (Construction, Infrastructure, Industrial), By Region (Northeast, Midwest, West), And Segment Forecasts, 2021 - 2028

Report Overview

The U.S. steel rebar market size was valued at USD 4.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.7% from 2021 to 2028. Focus on infrastructure investments is projected to remain key areas for market players in the U.S., and thus likely to propel the demand over the long term.

The infrastructure sector in the U.S. is facing under-investment. A 2017 study by the American Society of Civil Engineers (ASCE) stated that the investment gap in this sector is projected to reach USD 2.1 trillion over the next 10 years. As per the ASCE report of 2021, this gap has increased to USD 2.59 trillion over 10 years. However, a recent report in 2021 by ASCE, indicated improvement as infrastructure GPA improved to C- from D+.

In 2020, the lockdowns imposed in several states of the U.S. halted industrial activities and caused a severe decline in terms of downstream demand for rebar products. However, the U.S. government declared steel commodity under essential products, which kept the momentum of the market for a short term.

In 2021, steel prices have increased sharply. The key reason behind this increase is the lagging of steel production and the rapid surge in demand as the country recovers from the COVID-19 impact. The year 2020 was also a challenging year for producers owing to volatility caused by supply chain disruptions. As per the U.S. Census Bureau, in Q42020 unfilled orders reached the highest level in five years while inventories were at a 3.5 year low.

Application Insights

The infrastructure segment dominated the U.S. steel rebar market and is anticipated to witness the highest CAGR of 8.0% in 2020. In order to reduce the infrastructure gap, the U.S. government is introducing various investment plans. For instance, in the 2019 budget, USD 100.0 billion as incentives were provided to prioritize infrastructure maintenance, generation of revenue streams, and modernization of procurement practices.

Recently in March 2021, Biden Administration proposed a plan to invest USD 2 trillion for the infrastructure of the country. This will develop over 20,000 miles of roads, highways, and main streets. This will also help to fix 10 economically significant bridges in the country and will repair 10,000 smaller bridges. Thus, long-term investment in infrastructure development is projected to boost the demand for steel rebars over the coming years.

The growth of the construction sector is anticipated to remain the key driver for the long-term growth of the market. The construction segment dominated the market and accounted for the largest revenue share of 41.5% in 2020. Rebar products are widely utilized in commercial and residential buildings owing to their high strength and low weight, which reduces the load on the building foundations and improves economic savings.

Regional Insights

The Midwest U.S. segment accounted for over 20.0% share in 2020, in terms of revenue. New proposed infrastructural projects are projected to push the demand for steel rebar in the region. Commissioning of new transportation projects including the brentspence bridge, I-35 trade corridor, Fargo-Moorehead metro, and many more are likely to produce strong demand for rebar products.

The southwest region accounted for a share of 18.8% in 2020, in terms of revenue. States including New Mexico and Texas are likely to witness strong demand from the construction of production facilities. Texas is likely to witness nearly USD 1 billion refinery work investments over the long run. Also, as per the New Mexico Oil & Gas Association, New Mexico is projected to observe infrastructure investments of USD 174.0 billion by 2030 in the oil and gas sector.

Northeast U.S. is expected to observe the fastest growth rate over the forecast period. The demand in this region is primarily driven by the new infrastructural projects. Some of the key projects of the region include the long island tunnel project, Baltimore Washington rapid rail project, phase 3 of the New York second avenue project, and many more. The aforementioned projects are valued at around nearly USD 84 billion.

Key Companies & Market Share Insights

The market is highly competitive and characterized by the presence of local as well as multinational companies. The presence of key multinational players in the U.S. and low prices of steel products from developing countries have kept the competitive rivalry high in the market. The rising number of steel mills in the recent past has also increased the competition level. The competitors in the market are using various organic and inorganic growth strategies to expand their businesses. For instance, in July 2020, CMC Steel acquired the rebar business of AZZ, which manufactures galvanized rebar. This product is known as ‘Galvabar’ and is manufactured using galvanization of zinc coating on rebar. The addition of GalvaBar's value-added goods to the company's offering allows it to better serve and support the demand of its clients. Furthermore, the global footprint and distribution network will considerably expand the ‘GalvaBar’ product line's reach. Some of the prominent players in the U.S. steel rebar market include:

• ArcelorMittal

• Nucor Corporation

• Schnitzer Steel Industries, Inc.

• Acerinox S.A.

• Outokumpu

• EVRAZ North America, Inc.

• Liberty Steel USA

U.S. Steel Rebar Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the U.S. steel rebar market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Construction

  • Infrastructure

  • Industrial

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Northeast U.S.

  • Midwest U.S.

  • West U.S.

  • Southeast U.S.

  • Southwest U.S.