Recently, the domestic galvanized cold heading steel wire rod industry has been enjoying dual benefits of capacity upgrading and demand expansion. Driven by downstream industries such as new energy vehicles and high-end equipment manufacturing, as well as the promotion of environmental protection policies, the industry is accelerating its transformation towards high-end, green and intelligent development, and the market structure is continuously optimizing. As a key subcategory in the field of metal materials, galvanized cold heading steel wire rods have become an important basic material supporting the upgrading of the manufacturing industry due to their excellent corrosion resistance and cold working forming advantages.
On the production capacity side, the intensive implementation of intelligent upgrade projects by leading enterprises has become a highlight of the industry. On December 22nd, the hot-load test run of Ma Steel's cold rolling No. 6 galvanizing line was successfully completed. As a key project for structural adjustment during the 14th Five-Year Plan period, this project is designed with an annual production capacity of 450,000 tons, mainly focusing on high-strength and ultra-high-strength automotive steel with pure zinc coating. It will significantly enhance the domestic supply capacity of high-end automotive galvanized cold heading steel wire rods. Meanwhile, leading enterprises such as Baowu and Ansteel have achieved a 20% increase in production line efficiency and a 15% reduction in energy consumption per ton of steel through full-process intelligent transformation. Among them, Maanshan Iron and Steel has built the first domestic full-process intelligent cold heading steel production line, which has an annual production capacity of 400,000 tons of high-end products. The implementation of these projects has effectively alleviated the current situation of insufficient supply of high-end products and promoted the transformation of the industry's production capacity structure from low-end homogeneity to high-end differentiation.
On the demand side, the new energy-related fields have become the core engine of growth. Data shows that the consumption of cold heading steel per new energy vehicle is 30% to 40% higher than that of traditional fuel vehicles. Among them, the demand for galvanized cold heading steel wire rods in battery structural components and electric drive system fasteners is particularly strong. The related demand in the new energy vehicle field is expected to exceed 1.2 million tons by 2025. In addition, the demand growth rate in the manufacturing field of new energy equipment such as photovoltaic brackets and wind power towers has been significant. The compound annual growth rate of the market for zinc-aluminum-magnesium coated wire rods used in photovoltaic brackets has reached 28%. The construction of ultra-high voltage power grids has also driven the demand for galvanized steel strands to increase by 18% year-on-year. In traditional fields, the rapid development of prefabricated buildings has driven the demand for high-strength galvanized wire rods to grow by 12%, far exceeding the industry average and forming a diversified demand support pattern.
Technological innovation and policy guidance drive the upgrading of the industry. From a technical perspective, domestic enterprises have achieved mass production of high-strength and high-toughness cold heading steel with a tensile strength of over 1200MPa. The product performance is gradually approaching the international advanced level, and the domestic substitution rate has increased from 68% in 2020 to 78% in 2023. The production process has been upgraded to controlled rolling and controlled cooling (TMCP) technology. The industry penetration rate is expected to reach 65% in 2023 and exceed 85% by 2030. At the policy level, "Made in China 2025" has listed high-performance metal materials as a key development direction. The ultra-low emission transformation plan requires that the particulate matter emission concentration should not exceed 10mg/m³, promoting an increase in industry concentration. CR10 has risen from 58% in 2020 to 67% in 2033.
Looking ahead, with the continuous expansion of the new energy industry and the upgrading of high-end manufacturing, the market size of galvanized cold heading steel wire rods will grow steadily. It is estimated that the domestic market size of cold heading steel wire rods will exceed 65 billion yuan in 2025, and the compound growth rate from 2025 to 2030 will remain in the range of 8% to 10%. Industry enterprises need to continuously strengthen their investment in research and development and focus on breakthroughs in high-end products in order to seize development opportunities in the fierce market competition.