Asia Pacific steel rebar market share has witnessed exponential gains over the past several years owing to the measures undertaken by the government and private authorities to strengthen their infrastructural facilities, in order to accommodate the constantly growing population. The increasing presence of foreign companies in APAC due to the availability of cheap labor and low cost of raw materials has propelled the need for advances in commercial and industrial spaces.
Moreover, the anti-corrosion properties of steel provide enhanced shelf life to the structures hence resulting in greater stability. Steel rebar companies have frequently carried out R&D to enhance their product offerings to increase their customer base and expand their geographical reach. Chinese steel rebar manufacturers have aimed at developing earthquake-resistant and superior-strength steel rebars due to the frequent earthquakes in the region requiring strong and reliable construction solutions.
The alliance between governments and private companies to work on construction projects as well as the demand for steel as the main foundation of an infrastructure will drive the growth trends of steel rebar market over the years.
Substantial growth in urbanization in major parts of the world along with the need for robust infrastructural solutions has amplified the global steel rebar market size over the past several years. Steel rebars are extensively used to provide superior tensile strength to the concrete. They are an integral part of a building and construction due to their high stress and reinforcement bearing capabilities that it provides to the cement/concrete matrix in the entire building structure.
A few key manufacturers of steel rebars include SAIL, Jindal Steel & Power Ltd., Kobe Steel, and Gerdau SA among various others. Expounded below are certain factors likely to impact steel rebar market trends in the coming years.
1. High use of deformed steel rebars
Deformed steel rebars are hot rolled and then deformed by twisting it and creating grooves over its surface. In the year 2018, the deformed rebar segmented led the overall market share and was responsible for nearly 75% in terms of revenue.
The product is known to impart enhanced tensile and bonding strength, making it extremely suitable for use in vertical infrastructure. Basically, the steel is deformed to provide the hardened concrete more surface area to grip.
The region is witnessing some of the major construction projects proposed to be completing in the near future. One such example is the Hyundai Global Business Center in Seoul, South Korea. It is a 1771 ft, 105 story tower housing Kia Motors, Hyundai Motors, Hyundai Mobis, and other affiliated companies. Connected to the tower is likely to be a 40-story 265 super luxury hotel. The project was proposed to be completed by the end of 2021 however, due to the recent COVID-19 pandemic and the consequent effect on the businesses, the project may be further delayed.
2. Adoption of basic oxygen steelmaking technology
Basic Oxygen Steelmaking has been a leading steelmaking technology over the years. BOF uses iron ore as its base raw material in the form of steel scrap and molten pig iron. Oxygen is then blown into the melt under a slag where the oxidizing action transforms the raw material into steel. It is then further processed to form deformed or mild steel rebar.