The global stainless steel wire rod market to grow at a CAGR of 3.50% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global stainless steel wire rod market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The report also includes a discussion of the key vendors operating in this market.
One trend in market is demand for different types of stainless steel wire rods. Stainless steel wire rods are available in different grades. Grades that have lower alloys combination will resist corrosion in pure water or atmospheric environments. Grades that have a higher alloy combination can resist corrosion in alkaline or acid solutions and chlorine bearing environments, such as processing plants and other industrial facilities.
According to the report, one driver in market is increased usage of stainless steel wire in various industries. Stainless steel is used in a wide variety of applications in both industrial and consumer products because of its strength, durability, malleability, corrosion resistance, and attractive surface appearance. The major application of stainless steel wire rods is stainless steel wires which are used widely in many industries. In the automotive manufacturing industry, it is used commonly for reinforcing tires and to produce the drivetrain, steel wheel, exhaust, seating, and vehicle door systems. The global automotive industry is experiencing steady growth, and the volume of automobiles sold is expected to increase. The small vehicle segment consisting of microcars, superminis, and subcompacts account for approximately 30% of global vehicle sales.
Further, the report states that one challenges in market is economic downturns. Macroeconomic hurdles hamper the demand from the construction industry, which is a major end-user of stainless steel wire rods. This was much evident during 2010-2013, post global economic recession, which was further backed by the Eurozone crisis, which led to a significant decline in investment in the construction industry. European countries are still recovering from the Eurozone crisis, which has resulted in low spending in the construction sector due to financial constraints. For instance, the devaluation of the Chinese currency in August 2015 has already raised speculation across countries pertaining to export and import. In addition, regulatory hurdles also pose a serious challenge to the construction and building stainless steel wire rods industries. These factors will directly pose challenges to the stainless-steel wire rods market.