China\'s Growing Demand for Cold Drawn Bars Will Remain Stable in the Future

The cold drawn bar is cold-deformed by reducing the diameter of the die to the wire and cutting to the required length of the cold-finished product after various controls. It is accomplished by pulling the bar through a die that is smaller in size than a hot-rolled one. This process achieves the calibration of the wire to the desired diameter. A wide range of wires can then be obtained and the increase in mechanical properties depends on the reduction carried out. The "cold working" process improves the dimensional tolerances, straightness and surface appearance of the bars, as well as the physical properties of the steel.

Depending on the shape, cold drawn bars can be classified as round, hexagonal or square. For many years, cold drawing has been used to improve round, square, hexagonal, flat and various cross-sections known as "special shapes". In 2020, 48.66%, 37.01% and 14.33% of round, hexagonal and square cold drawn bars were available in the market respectively.

Cold drawn bars are commonly used in construction, mechanical engineering, automotive, and industrial equipment. In terms of market share in 2020, mechanical engineering is the largest application market for cold drawn bars, with a share of 31.86%. In addition, the construction, automotive, and industrial equipment sectors each account for 19.46%, 14.91%, and 18.07% of the market share.

Cold drawn bars are formed quickly, have a high yield, do not damage the coating, and can be made in various cross-sectional forms to meet the conditions of use. The cold working process improves the dimensional tolerances, straightness, and surface appearance of the bars, and improves the physical properties of the steel. All in all, cold drawn bars have outstanding advantages in their own right, which are beneficial to the industry and have a beneficial impact on the industry. With economic growth, technological advancement, and the development of modern enterprises, the demand for cold drawn bars in China is increasing. China has become a bright spot for global growth and an emerging market for the cold drawn bar industry.

The Current Situation of China\'s Cold Drawn Bar Market Under the Influence of the Epidemic

East China is the largest revenue market in China\'s cold drawn bar industry, with a market share of 30.11% in 2015 and 30.93% in 2020, an increase of 0.82%. in 2020, the Southeast region has the second-largest market share of 22.29%.

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The market concentration in China\'s cold drawn bar industry is relatively low. The top three companies are Northeast Special Steel, Jianlong Beiman Special Steel, and Xining Special Steel, with revenue market shares of 7.67%, 5.01%, and 1.87% in 2020, respectively. Competition within the cold drawn bar industry is becoming increasingly fierce as major domestic manufacturers and suppliers in the industry compete. China, as the most populous country in the world, has huge downstream demand. Manufacturing costs in China tend to be lower compared to manufacturing in other developed countries such as Europe and the US, which has reduced manufacturing costs for manufacturers and attracted more and more large companies to enter the Chinese market, intensifying competition in the cold drawn bar industry.

The new crown pneumonia epidemic led to a decline in offline traffic and highlighted the advantages of e-commerce companies. During the epidemic prevention and control period, some cold drawn bar companies did not market and promote their business online, and therefore encountered great resistance to taking on the business. For enterprises that did not make good use of network promotion means, there was almost no market development during the epidemic, and the original offline market development plan was disrupted, facing fierce homogeneous competition in the market.

The impact of the epidemic on the cold drawn bar industry involves all major links and subjects of the industry chain. The supply of raw materials was greatly restricted by China\'s transportation system, especially the road and waterway transportation system. In addition, the company\'s commute is severely disrupted, production plans are severely disrupted, network expansion is delayed, and production and delivery may be delayed to some extent.

China Cold drawn Bar Development Outlook Analysis

According to the research data, the total revenue of China cold drawn bar market was US$ 2,742.71 million in 2015, growing to US$ 3,910.09 million by 2020. China will show a high CAGR in the coming years due to the surging demand for construction and mechanical engineering in the country. meanwhile, thanks to rapid economic development and strong domestic demand, China leads the world in steel production, which reached 500 million tons in 2008, accounting for 37.6% of the world market share. With good economic fundamentals and investment in high steel consumption areas remaining at a high level, China\'s steel industry remains optimistic about its future development. In addition, China has been transforming itself from a low-income, less-developed economy to a modern industrial economy with a high standard of living. The rapid development of the secondary industry, especially the construction industry, will drive the growth of the cold drawn bar market. Meanwhile, the rapid development of downstream industries such as construction in China also means that cold drawn bars have a large market potential in China. Therefore, we forecast the cold drawn bar market to reach a value of USD 5185.67 million by 2025. The cold drawn bar will grow at a CAGR of 5.81% from 2020 - 2025.

With the development of the modern economy and science and technology, urbanization in China is accelerating. With the growing economy and increasing disposable income per capita, the China cold drawn bar market is expected to grow at a steady rate during the forecast period. This shows that the outlook for the China cold drawn bar market is positive. However, the shortcomings of the cold drawn bars themselves dissuade some consumers and are detrimental to the development of the industry, such as poor seismic performance, scores, buckets, dents, etc.

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