The Latin America steel rebar market size was valued at USD 16,133 million in 2022 and is projected to reach USD 26,567 million by 2031, registering a CAGR of 5.2% during the forecast period (2023-2031).
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.
The Latin American steel bar market is anticipated to rise at a healthy clip throughout the forecast period. The economies in this area have seen a small dip because of the Russia-Ukraine conflict. Several nations, like Brazil and Argentina, have been emphasizing building new ports or expanding existing ones to keep up with rising trade volume and vessel count. Belize II bridge, Cabo Rojo international airport, Los Chorros Highway, and Honduras Hospital network are some key development projects to boost steel rebar demand in the region.
It is projected that growing international trade will result from transferring low-cost manufacturing industries from China to other nearby East and South Asian nations, increasing seaborne trade flows to Latin America.
The increase in demand for steel rebar is mostly due to the growing population in Latin America. 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.
Increased expenditures in large infrastructure projects are driving up demand for steel rebar in Latin America. 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.
Corrosion of steel in Latin America 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.
In Latin America, 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.
The Latin American 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.
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.
The Latin American 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 bar (small) dominated the market and is expected to register a CAGR of 6.6% 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 8.2% 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 8.1% 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.
Oil and gas dominated the market and are expected to register a CAGR of 7.6% over the forecast period.
The Latin America steel rebar market is segmented by country: Brazil, Mexico, Argentina, Chile, Colombia, Rest of LATAM. Colombia dominated the market with a CAGR of 5.9% during the forecast period.
The steel rebar market in Latin America holds promising opportunities for growth and advancement. The construction sector in the region is expanding, driven by factors such as urbanization, infrastructure development, and the increasing demand for residential and commercial structures. Brazil, Mexico, and Argentina, among others, are experiencing significant investments in construction projects, resulting in a rise in the demand for steel rebar. Furthermore, the region's emphasis on sustainable construction practices and the growth of the manufacturing and automotive industries contribute to the overall expansion of the steel rebar market in Latin America.
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