Recently, the electro-galvanized tempered steel wire industry is undergoing a dual transformation driven by both policy guidance and market forces. With the upgrading and implementation of domestic and international standards and the explosive growth of demand in the new energy industry, traditional steel wire products are accelerating their transformation towards high-end and environmental protection, and the industry landscape is facing a profound adjustment.
The upgrade of the standard system has become a "catalyst" for industry transformation. Since the implementation of the domestic GB/T 3082-2020 standard, precise requirements have been put forward for the content of elements such as carbon and manganese in steel wires, forcing enterprises to improve their processes to meet the demands of extreme environments such as deep sea and high humidity. In the international market, the new standard of BS EN 10244-2:2023 further clarifies the coating specifications of zinc-aluminum alloys and raises the export threshold. Under the pressure of dual standards, the proportion of domestic electro-galvanized tempered steel wire capacity that meets the new standards was only 62% in 2024. It is expected to increase to over 85% by 2026, giving rise to a large demand for high-end capacity substitution.
Market demand shows a significant structural differentiation. Demand in the traditional construction sector has been weak due to the adjustment in the real estate market, while new energy and high-end manufacturing have become growth engines. Data shows that in 2024, the consumption of galvanized steel wire for photovoltaic brackets increased by 34% year-on-year, and the growth rate of high-strength products (tensile strength ≥1570MPa) for ultra-high voltage power grids was as high as 11.2%. In the automotive sector, the 45% increase in the production of new energy vehicles has driven the usage of steel wire for fasteners to exceed 150,000 tons. The demand for hydrogen energy storage and transportation equipment has further given rise to new zinc-nickel alloy coatings, whose elongation at break is 50% higher than that of traditional products.
Technological innovation and capacity optimization are advancing in parallel. Leading enterprises are increasing their investment in research and development. Companies like Li Xin Steel Wire Factory plan to build provincial-level research and development centers, focusing on high-zinc coating heavy-duty anti-corrosion products. At the process end, the penetration rate of nano-galvanizing and chromium-free passivation technologies has increased, and the unit price of high-end products is 35% to 40% higher than that of traditional models. In terms of regional layout, the central and western regions have taken over the transfer of production capacity by virtue of their electricity price advantages, with the proportion of newly built production capacity reaching 30%, complementing the eastern coastal areas.
The challenges faced by the industry are equally prominent. The annual fluctuation range of zinc prices reaches ±18%. Environmental protection investment accounts for 15% to 20% of production costs. Coupled with the homogeneous competition among small and medium-sized enterprises, the industry's capacity utilization rate remains within the range of 72% to 75%. However, the long-term outlook is promising. It is expected that the global market size will grow at an annual rate of 4.2% from 2025 to 2030. As a core market, China will continue to lead the growth with a global share of 38%.
Under the dual impetus of policies and the market, the electro-galvanized tempered steel wire industry is bidding farewell to the era of scale expansion and shifting towards a "quality and efficient-oriented" development. Only by focusing on high-end and environmentally friendly transformation can enterprises gain the upper hand in the new round of industry reshuffling.