Under the dual impetus of the "Digital China" strategy and green manufacturing policies, China's phosphating steel wire industry has recently shown multiple favorable trends of capacity expansion, technological upgrading and market expansion, becoming a growth highlight in the metal products sector. As a key material in fields such as optical cables, Bridges, and automobiles, phosphated steel wire is moving towards a new stage of high-quality development relying on policy regulations and technological innovation.
At the policy level, the process of industry standardization is accelerating. In September 2025, the Hebei Quality Information Association officially initiated the project of the "Group Standard for Process Technology Requirements of Phosphating Steel Wire". In response to long-standing issues in the industry such as inconsistent processes and fluctuating product performance, it clearly defined core requirements including production environment control, personnel qualifications, and environmental protection and safety. This standard not only provides a production benchmark for small and medium-sized enterprises but also helps improve the quality of high-end products. This standard echoes the national "dual Gigabit" network development plan and provides a guarantee for the stable supply of phosphated steel wire for optical cables. Data shows that the domestic market size of phosphated steel wire for optical cables reached 4.27 billion yuan in 2024 and is expected to increase to 4.81 billion yuan in 2025, representing a year-on-year growth of 12.6%.
Technological innovation has become the key for enterprises to break through. In March, Hebei Tangyao Technology was granted a patent for the "Wire Online Production Phosphating Tank". Through a dual-tank design and optimized stirring, it significantly enhances the uniformity of the phosphating solution, solving the problem of unstable quality in traditional processes. The upgrading of environmental protection technology is advancing simultaneously. Jiangsu Xingda Steel Cord adopts a low-nickel phosphating formula, reducing the nickel content on the surface of the steel wire to below 0.3g/m², successfully entering the high-end supply chain in Europe. Leading enterprises such as Baosheng Co., Ltd. and Zhongtian Technology have achieved full-process online monitoring of production, with a significant improvement in the rate of qualified products.
The layout of production capacity and market demand form a positive interaction. The fully automatic pickling and phosphating production line put into operation by Guangxi Liuzhou Iron and Steel Industry in July has an annual production capacity of 60,000 tons, filling the regional gap and providing products for the markets in South China and Southwest China. Due to a sharp increase in orders, Liaoning Buton Technology's monthly production capacity will double to 10,000 tons after the new production line is put into operation. Relying on the "short process" supply chain advantage with Ansteel, it will serve infrastructure and port upgrading projects in Northeast China. The export market was also impressive. In the first half of 2024, China's export volume of phosphating carbon steel wire reached 973,000 tons, up 15.4% year-on-year. The RCEP policy dividend drove the export volume to Japan to increase by more than 39%.
Fluctuations in raw material prices test the resilience of enterprises. Henan Lihui raised the price of lead bath phosphating steel wire by 30 yuan per ton in July, reflecting the trend of cost pressure being passed on to the terminal. However, the domestic production rate of high-end carbon steel wire rods has risen from less than 40% in 2020 to 61%, effectively alleviating supply chain risks. With the acceleration of 6G pre-research and the construction of Marine communication networks, the demand for special phosphated steel wires with stronger corrosion resistance will continue to be released. It is expected that the growth rate in this field will reach 18.4% in 2025, injecting new impetus into the industry.