October 07, 2008

Global steel wire market to reach USD 23.7 billion by 2012

According to new report by Global Industry Analysts Inc, a tremendous growth in developing economies, particularly China and India is fuelling market growth. Backed by various favorable trends, the steel wire market is projected to reach USD 23.7 billion in 2012.

Steel wire market in Asia Pacific is estimated at USD 9.4 billion, as stated by Global Industry Analysts, Inc. Asia Pacific and Europe collectively account for more than 70% of the global steel wire market.

The report said that European carbon steel wire market is expected to reach USD 4.6 billion by 2010. Global market for alloy steel wires is expected to grow at a compounded annual rate of 4% over the period 2001-2010. Asia Pacific accounts for about 43% of the global stainless steel wire market.

The steel industry's business cycles reflect the general economic activity of a nation. Steel wire being a part of steel industry is highly dependent on the buoyancy of its end use industries. Conditions in construction and automotive industries largely determine demand for wire products worldwide. Rampant economic expansion in China has catapulted the nation as the largest and fastest growing consumer of steel and steel products in the world. Growing investment in infrastructure and higher disposable incomes in several developing economies are key factors driving growth in steel and its derivative products.