As the construction industry continues to improve, demand for steel and iron wire will expand
Los Angeles, CA (PRWEB) March 24, 2014
Nonelectrical steel and iron wire has a buyer power score of 3.7 out of 5. This market's buyer score shows that suppliers are typically flexible with their prices, explains IBISWorld research analyst Olawale Harrison, “but buyers should not expect to find heavy discounts on their transactions.” The top suppliers in the steel and iron wire market offer the best and most reliable product, but these products come at a premium that is relatively nonnegotiable. Current major vendors include Posco, ArcelorMittal, Nucor Corp. and Gerdau. Volatile input costs and low profit margins are some of the reasons why suppliers are firm with their prices; however, the ever-increasing number of imports into the domestic market will give buyers greater leverage when negotiating contracts.
The recent price change for nonelectrical steel and iron wire is directly correlated to the performance of its key buying industries. Prices for steel and iron wire have steadily increased over the past three years due to strengthening demand from the industrial, construction, oil and gas industries. “A recovering construction market and growing oil production have caused suppliers to increase their prices in an effort to capitalize on increasing demand for their products, making up for lost revenue and declining profit margins experienced during the recession,” says Harrison. Nevertheless, the rate at which prices escalate is forecast to decrease over the coming years as steel prices cool, providing potential purchasing opportunities for buyers.
Import competition is a significant pricing factor for domestic manufacturers. Over the three years to 2013, imports grew at an average annual 9.9%, increasing price competition between suppliers. These low-price imports have consistently undercut a majority of suppliers operating within the market but buyers stand to benefit from these circumstances. Buyers can also leverage more cost savings by locking in low prices during this time with long-term supply contracts. For more information, visit IBISWorld’s Non-Electrical Steel and Iron Wire procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of non-electrical iron and steel wires for industrial use. This report includes low and high carbon, hand drawn, and stainless steel wire as well as wires that are stranded, oil tempered or used in prestressed concrete applications. This report does not include wire ropes used for suspension, lifting or towing.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.