The global bright steel bar market is projected to reach USD 4 Billion in 2024, with a CAGR of 8% during 2024-2029.
Definition
Bright steel bar is a carbon black steel which has had the surface condition improved by drawing, peeling, turning or grinding the black steel finish to produce a “bright” finish with a tighter tolerance and an improved surface without scale. Bright Bars are steel bars which are structured in precise shape, making it the preferred choice in the manufacture of various products.
Market by Region
Based on region, the bright steel bar market is divided into North America, Europe, Asia-Pacific, Middle East and Africa, and South America.
In 2023, the Asia-Pacific market accounted for the largest regional sales share, reaching 72.43%. The table below shows the sales market share by region in 2023.
|
Region |
Sales Share in 2023 |
|
North America |
8.61% |
|
Europe |
13.31% |
|
Asia-Pacific |
72.43% |
|
Middle East and Africa |
2.50% |
|
South America |
3.14% |
Global Bright Steel Bar Import and Export
The top-ranked import and export markets for bright steel bar are China, the U.S., and Europe. China is the largest import and export market. In 2023, China imported 387.2 K Tons of bright steel bar and exported 515.0 K Tons of bright steel bar.
‘The table below shows the import data for the top three regions in 2023.’
|
Region |
Import (K Tons) |
|
China |
387.2 |
|
U.S. |
82.7 |
|
Europe |
59.9 |
‘The table below shows the export data for the top three regions in 2023.’
|
Region |
Export (K Tons) |
|
China |
515.0 |
|
U.S. |
48.3 |
|
Europe |
87.6 |
Top Impacting Factors
‘Political Factors’
Political factors wield substantial influence over the Bright Steel Bar industry, impacting its global operations, trade dynamics, and regulatory environment. Governments play a central role in shaping policies that can either facilitate or hinder the industry’s growth. Key political factors include:
1. Trade policies: Governments around the world implement trade policies, tariffs, and import/export regulations that directly affect the movement of steel products across borders. Trade disputes, such as anti-dumping investigations and tariffs, can disrupt international supply chains and impact the industry’s competitiveness. For example, the United States has introduced a series of anti-dumping measures against steel imports from some countries, including raising the anti-dumping tax rate of cold-rolled products in China to 522% in 2016, and launching a 337 investigation against steel enterprises in China; Commission Implementing Regulation (EU) 2022/433 of 15 March 2022 imposing definitive countervailing duties on imports of stainless steel.
2. Infrastructure investments: Government investments in infrastructure projects, such as construction of roads, bridges, and buildings, drive demand for steel bars. Political decisions on infrastructure spending can have a direct impact on the industry’s growth.
3. Global trade agreements: Participation in international trade agreements and organizations can affect the industry’s access to foreign markets and the terms of trade. Trade negotiations can lead to changes in tariffs, quotas, and trade rules. Such as Customs Union and Single Market. The EU operates as a customs union and a single market, allowing for the free movement of goods, including Bright Steel Bars, among member states. This facilitates trade within the EU, and exporters benefit from reduced trade barriers and customs procedures.
‘Economic Factors’
The industry’s growth is closely tied to economic cycles, as demand for these products is often linked to construction, manufacturing, and infrastructure development. Factors such as GDP growth, inflation rates, exchange rates, and interest rates directly influence consumer and business spending, thereby affecting the demand for steel bars.
1. Current state of the global economy: In the first half of 2023, the global economy showed strong resilience, and the International Monetary Fund (IMF) raised its global economic growth forecast for 2023 from 2.8% in April to 3.0%. The gradual fading of the impact of the Russian-Ukrainian conflict, the warming of the labor market in major developed economies and the fiscal expansion during the COVID-19 period have reduced the pressure on residents to repay debts and brought excess savings, which are the main reasons for the better-than-expected global economic performance. However, the global inflationary pressure has not dropped significantly, and the core inflation viscosity is still strong. Despite the positive factors such as China’s re-opening, Europe’s response to the energy crisis and the easing of supply chain bottlenecks, persistent inflation and high interest rates in most economies may limit the recovery of steel demand in 2023. Continued inflation is still a downside risk, which may lead to high interest rates.
2. China’s economic status：Taking China as an example, the negative momentum of the construction industry in 2021 will be further intensified in 2022: all key real estate indicators are in the deep negative region. In 2022, the newly started area decreased by 39.4%, and investment in real estate development decreased by 10.0%, which was the first year-on-year decline in 25 years. These sharp declines will put pressure on construction activities in 2023-2024, but due to government support measures, the real estate industry may rebound slightly in the second half of 2023. The real estate recovery is expected to continue in 2024, but the extent is limited.
