Balkans TMT Steel Bar Market size is forecast to reach $5 billion by 2025, after growing at a CAGR of 10.5% during 2020-2025. High grade TMT steel bars are thermo-mechanically treated bars having a tough outer core and soft inner core. They have high specific strength and excellent corrosion resistance owing to its use in various infrastructural and construction activities. Increasing demand from construction industries for a high-quality product with good durability and corrosion resistance is driving the growth of Balkans TMT steel bars market globally. Moreover, government supports and policies like National Steel Policy (2017) and the advantages of thermo-mechanically treated steel bars over torsional bars are also driving the growth of Balkans TMT steel bars market.
Grade – Segment Analysis
Among the grade, the Fe 415 segment holds the largest share of more than 30% Balkans TMT steel bar market in 2019 owing to its high ductility the demand for Fe 414 TMT steel bar is growing from the seismic prone zones. Furthermore, the Fe 415 grade TMT bars have yield strength of 415 N/mm2 and ultimate tensile strength of 485 N/mm2. Percentage elongation of Fe 415 grade iron is 14.5 which is comparatively higher than other grade. Moreover, the availability of Fe 415 grade TMT bars in different cross-sections such as 8mm, 10mm etc. has made them suitable for various constructional applications.
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By Diameter – Segment Analysis
Based on the diameter, 12-20 mm segment is the fastest growing segment in the Balkans TMT steel bar market during the forecast period. The properties of 12-20 mm TMT steel bar like ease in weld ability, high bending strength, and ability to withstand high temperature makes them suitable for the use of various commercial and infrastructural applications that further leads to fuel the growth of 12-20 mm Balkans TMT bar segment during the forecast period. Furthermore, the 12 -20 mm TMT bars are used in beams and columns in order to withstand external loads whereas TMT bars of over 20 mm are used in construction of complex structures such as dams and bridges.
Application – Segment Analysis
Based on the application, the residential segment holds the largest share of more than 40% Balkans TMT steel bar market in 2019 due to growing building and construction activities along with increasing population globally. According to the U.S Census Bureau, in March 2020, the completed residential housing constructions were 1,227,000 in the United States and is expected to grow, substantially augmenting the demand of Balkans TMT steel bar in the U.S market. Moreover, focus of government on reforming and construction of infrastructures such as ENABLE Build Programme by UK government and Indira Awaas Yojana by Indian government is boosting the demand of Balkans TMT steel bar.
Geography- Segment Analysis
Asia Pacific dominated the Balkans TMT steel bar market with a share of more than 35% in 2019, followed by the North America and Europe. Rapid industrialization and urbanization have driven the growth of Balkans TMT steel bar market in APAC region during the forecast period. Furthermore, the rise in disposable income coupled with high standard of living has also accelerated the construction activities across the emerging nations like China and India, which in turn drives the growth of this market in APAC region. China and India have shown highest growth in the Balkans TMT steel bar market due to the increase in Infrastructural activities such as dams, metro lines, and skyscrapers across the country. Moreover, rise in need for housing of rapidly growing population is also augmenting the growth of Balkans TMT steel bar market in APAC region. According to Oxford Economics, global construction output will grow by 85% to $15.5 trillion by 2030, with China, US and India, leading the way and accounts for 57% of all global growth subsequently aiding the growth of Balkans TMT steel bar in APAC market.
Drivers – Balkans TMT Steel Bar Market
Increase in construction activities
Increase in construction activities without compromising the strength and safety is driving the growth of Balkans TMT steel bar market. They offer excellent corrosion and aging resistance which gives strength to infrastructure. Balkans TMT bars are ductile and are widely used for construction activities. According to International Energy Agency, global floor area in buildings is expected to double to more than 415 billion square meters by 2050 which in turn propels the growth of Balkans TMT steel bars market globally. Moreover, government focus on improving infrastructure and road projects is boosting the demand of Balkans TMT bars. Ongoing governmental projects in India such as Anpara Coal Based Power Project and Amarja Irrigation Project in 2019 is likely to aid the demand of Balkans TMT steel bars in Indian Market.
Exceptional properties of TMT bars
TMT bars can provide 20% more strength as compared to ordinary steel bars. They have high tensile strength and the soft inner core of TMT bars make them flexible. Greater shock absorbing properties of TMT bars led their use in earthquake prone areas for construction activities, subsequently fueling the growth of Balkans TMT steel bar market. Additionally, resistant to corrosion and special ribbed design of TMT bars for a stronger bond with concrete make them the right choice for buildings and infrastructures. Excellent bending ability coupled with ease in welding, allow engineers to construct complex infrastructures substantially boosting its market growth.
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Challenges – Balkans TMT Steel Bar Market
Volatility in prices of iron ore
TMT bars are made from iron which is extracted from iron ore. Due to the lack of iron ore in the market, prices of TMT bars are reaching the sky. According to Indian ministry, the lease of 31 working iron ore mines have expired on 31 March 2020 as per provision of section 8A(6) of MMDRA act which in turn greatly affect the market and lead to a shortfall of 60 million tons of iron ore in the Indian market. Volatility in prices of raw material and their scarcity acts as a restraining factor for the growth of Balkans TMT bar market. According to Indian Brand Equity Foundation (IBEF), government of India has raised import duty on most of steel items twice, each time by 2.5 % and imposed measures including antidumping of steel and iron further impacting the Balkans TMT steel bar market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Balkans TMT steel bar market. Major players in the Balkans TMT steel bar market are ArcelorMittal Zenica, Balkan Steel Engineering Ltd., Essar Steel, HBIS Group, HUS Ltd., Metalopromet d.o.o Kula, MMD, SIDERAL S.H.P.K., SIJ Group, TATA Steel, Eurometal Bulgaria Ltd., and Ovako Bulgaria among others.
In December 2019, ArcelorMittal has acquired Essar Steel and simultaneously signed a joint venture with Nippon Steel Corporation. The acquisition led ArcelorMittal to strengthen their business and meet the demands of steel in Indian Market.
In May 2019, Steel Authority of India Ltd. (SAIL) has launched a new brand of TMT bars named SAIL SeQR. SeQR has higher strength combined with better ductility that would enhance the safety in construction activities.
In December 2018, Tata Steel has launched its best in class Tata Tiscon SD in Southern Indian market. The new product was made with improved mix of carbon, phosphorus, sulphur and other alloying elements along with post rolling treatment for more flexible bars.
An increase of 3.3% in production of steel in 2018-19 has led India to attain 2nd position after China in steel production, subsequently escalating the growth of Balkans TMT steel bar in Indian market.
Trade war between U.S and China has brought struggles for the steel manufacturers due to high tariffs, further impacting the growth of Balkans TMT steel bar market.
Lockdown and unavailability of workers due to the outbreak of COVID-19 has decreased the production which in turn also impacted the Balkans TMT steel bar market industry growth. For instance, According to Indian Steel Association (ISA), the spread of pandemic and subsequent lockdown will lead to decline in demand of steel by 13 million tons or by 12.2% in 2020. This decrease in demand of steel badly affects the growth of Balkans TMT steel bars market.
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