Japan Steel Rebar Market

Market Overview

The Japan steel rebar market was valued at USD 7,359 million in 2022 and is projected to reach USD 13,085 million by 2031, registering a CAGR of 6.4% during the forecast period (2023-2031).

Highlights

• The wire dominated the market by material.
• The carbon steel bar dominated the market by type.
• The 60 dominated the market by grade.
• Manufacturing dominated the market by end-user.

Steel reinforcement bar is also known as rebar, reinforcing bar, reinforcing steel, and reinforcement steel. It is a flexible building material commonly used to manufacture reinforced concrete in construction.  Rebar is used to strengthen the tensile strength of concrete since it is very weak in tension but very powerful in compression.  Steel rebar is available in a variety of bar diameters, some of the coating options are epoxy-coated steel rebar, and galvanized steel rebar is used in special projects related to industrial, residential, and infrastructure exclusively.

The Japan region will be a hub for new construction and rebuilding activities in the future, which should prove extremely profitable for multinational businesses. Additionally, the demand for steel rebar is increasing due to urbanization and rapid infrastructure development, particularly in developing nations like China and India. The rise in demand for steel rebar is largely due to the growing population.

Market Dynamics

Japan Steel Rebar Market Drivers

Rising Investments in Infrastructure Development Projects and Construction Activities

Increased expenditures in large infrastructure projects are driving up demand for steel rebar in Japan. Steel rebar is widely used in many industries, including non-residential ones like oil and gas and manufacturing, and it is essential for developing infrastructure. Rapid infrastructure development, urbanization, and the rising demand for goods in industries like roads, bridges, sewage systems, airports, and stadiums all impact the growth of the steel rebar market. Additionally, improvements in steel rebar coatings have increased its longevity, making it appropriate for various uses in infrastructure development.

Increasing Urban Population

The increase in demand for steel rebar is mostly due to the growing population in Japan. The demand for steel rebar is fuelled by the quickening development of infrastructure and urbanization, particularly in nations. People are moving from rural to urban regions, accelerating the market's expansion. The availability of public financing for residential construction also contributes significantly to the growth of the steel rebar business. High-strength rebar is used in construction projects as an incentive, thanks to government subsidies and assistance for low-income households. Rapid urbanization also fosters commercial and economic development in developing nations.

Japan Steel Rebar Market Restraints

Vulnerability of the Construction Industry to Crises

In Japan, initial investments needed for building projects of construction businesses are particularly sensitive to crises, exposing them to sizable financial losses brought on by unforeseen occurrences. Such difficulties include pandemic effects, economic recessions, and political instability. Since steel rebar is largely utilized in applications, including roads, bridges, commercial and industrial buildings, and public infrastructure, its demand is directly correlated with construction activity. The vulnerability of the construction sector to crises, a lack of trained labor, and a lack of knowledge are expected to impede the expansion of the steel rebar market.

Rusting of Steel Bar

Steel corrosion in Japan is caused by weather exposure, which reduces the strength of reinforced concrete. The growth of rust exerts internal tension on the nearby concrete, causing fissures. Concrete poured may get stained when rain removes the top layer of rebar. Furthermore, significant rusting brought on by seawater corrosion might render the rebar useless. Rust has a detrimental influence on steel's ability to support loads, making it less effective when used with concrete to support structural loads. Rusting causes steel to turn into iron oxide, which expands significantly in volume and causes severe internal stresses in the nearby concrete. The market's expansion is to this aspect.

Japan Steel Rebar Market Opportunities

Development of Smart Cities

The development of smart cities is expected to have a considerable positive impact on the growth of the residential sector. Additionally, financing for infrastructure development projects, such as building bridges, hospitals, and public services, is anticipated to rise, likely promoting socioeconomic growth. Additionally, the oil and gas sector is anticipated to be the most profitable market for non-corrosive steel rebar, increasing worldwide refining output. The growth of the worldwide market is anticipated to be fuelled by this development of refineries, which will increase demand for steel rebar.

Technological Advancements

The Japanese steel rebar market is anticipated to expand because of ongoing technological improvements and innovations. With this development, both well-established businesses and fresh market entrants stand to profit financially. The need for high-performance steel rebar applications is fuelling ongoing industry innovation. Advanced steel rebar variations with characteristics like an epoxy coating, earthquake resistance, and corrosion resistance are often used in various industries. The demand for value-added products is being driven by the implementation of strict government rules and manufacturers' devotion to quality improvements. Steel rebar manufacturers have several chances to profit from this large market potential.

Segmental Analysis

The Japan steel rebar market is segmented into material, type, grade, and end user.

By material, it is further segmented into bar (small), bar (large), wire, coil, and others.

The wire dominated the market and is expected to register a CAGR of 6.5% over the forecast period.

By type, it is further segmented into mild steel rebar, deformed steel rebar, carbon steel rebar, stainless steel rebar, galvanized rebar, glass fiber reinforced polymer rebar, epoxy coated rebar, welded wire fabric rebar, expanded metal rebar.

The carbon steel bar dominated the market and is expected to register a CAGR of 7.6% over the forecast period.

It is further segmented by grade into 40, 60, 75, 80, 100, 120, 150, and others.

The 60 dominated the market and is expected to register a CAGR of 8.8% over the forecast period.

By end user, it is further segmented into construction (residential, commercial, others), infrastructure (roadways, bridges, railways, airports, others), oil and gas, manufacturing, agriculture, and others.

Manufacturing dominated the market and is expected to register a CAGR of 7.4% over the forecast period.

Recent Developments

• April 2022- Tata Steel announced that it had signed a share purchase agreement with Steel Authority of India Limited (SAIL) to purchase the latter’s full 50% holding in S&T Mining has been converted into a wholly owned subsidiary of Tata Steel following the completion of the transaction. On April 11, 2022, the business acquired all of SAIL’s equity investment in S&T Mining, according to a filing with the BSE by Tata Steel.