U.S. COPPER CLAD STEEL WIRE MARKET ANALYSIS

Copper clad steel (CCS) wires are the steel wires covered with copper. These wires offer combined conductive properties of copper and the high tensile strength of steel. The core material is low carbon steel and is used as the inner conductor of coaxial cables or as grounding wire. According to the U.S. Energy Information Administration (EIA), in 2018, around 4,178 billion kilowatt-hours (kWh) of electricity was generated at utility-scale electricity generation facilities in the U.S. As per EIA, electric power accounted for 38.1% of the total primary energy consumption in the U.S. in 2017 which may boost the U.S. copper clad steel wire market growth in the near future.

The U.S. copper clad steel wire market is projected to surpass US$ 3,179.86 million by the end of 2028, and is expected to exhibit a CAGR of 2.48% during the forecast period (2021 to 2028).

Drivers

Copper clad steel (CCS) wire finds its application in electrical, construction, and automotive industries as coaxial cables, low current and signal cables, and for utility grounding applications. The growth of these end-use industries is expected to fuel the U.S. CCS market growth over the forecast period.

Growing construction and automotive industries in the U.S. is expected to boost the CCS wire market growth. According to the data released by the U.S Census Bureau and the U.S Department of Housing and Urban Development in June 2019, the number of newly completed residential buildings was about 900 thousands of unit in May 2014 which increased to 1,200 thousands of unit in May 2019.

Market Restraints

High prices of copper affect the growing demand for copper clad wires. Therefore, various alternatives such as zinc coated steel wire are available in the market. The increasing adoption of zinc coated steel wire is expected to restrain the U.S. copper clad steel wire market growth over the forecast period.

Moreover, alternatives such as copper clad aluminum wire that offers several advantages such as low weight, lower scrap value (theft resistance), and cost cutting in wire manufacturing are widely available in the market. This, in turn, is expected to hamper the U.S copper clad steel wire market growth in the near future.

Market Opportunities

Demand for copper clad steel wire is increasing due to its growing applications in power generation and building and construction industries in the U.S. Ever-increasing population is further expected to result in robust growth of the construction industry which will lead to significant rise in demand for copper clad steel wires in the country.

For instance, according to the U.S. Department of Commerce, on July 1, 2019, the population of the U.S. was 331.9 million. Also, as per the U.S. Department of Housing and Urban Development, in May 2019, the total number of new residential housing completions was 1,213,000, and 1,294,000 building permits were sanctioned. Such increasing construction activities is expected to boost the demand for copper clad steel wires during the forecast period.

Figure 1. U.S. Copper Clad Steel Wire Market – Opportunity Analysis

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Market Trends

The increasing rate of copper theft in the case of copper clad steel wires is a major factor hampering the market growth. To overcome this loss, companies have started providing a protective covering to the wire. This covering can be in the form of PVC (Polyvinyl chloride) jacket, HDPE (High-density polyethylene) jacket, or a metal cage surrounding the copper clad steel wire along its length. Companies manufacturing anti-theft coverings include AFL, Copperhead Industries LLC., and others.

Figure 2. U.S. Copper Clad Steel Wire Market, Revenue Share (%), By Product Type, in 2020

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Key Takeaways of the Graph:

• Among product types, copperclad wire-high strength (HS) and extra high strength (EHS) segment held the dominant position and accounted for 32.33% share in the U.S. copper clad steel wire market in 2020. The segment is expected to reach US$ 1,018.92 million in 2028.
• Copperclad wire-high strength (HS) and extra high strength (EHS) is commonly utilized for messenger wire and overhead ground wire due to its high conductivity and corrosion resistance features. It can also resist mechanical and electrical damage caused during installation and by electric fault condition.

U.S. Copper Clad Steel Wire Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 has a significant impact on both supply and demand sides of the copper clad steel wire industry. Since first cases in North America were reported in the United States in January 2020. The COVID-19 pandemic has had an unprecedented impact on the U.S. economy. The pandemic effect on the building and construction industry has also affected the production, supply and demand for copper clad steel wire. Additionally, its financial impact on firms and financial markets has caused supply chain and market disruptions. According to the World Economic Forum (WEF), the U.S. experienced the sharpest decline in manufacturing and overall industrial production as a result of supply chain disruptions and fears of recession in the financial markets during the pandemic.

Competitive Section

Major players operating in the U.S. copper clad steel wire market include Copperhead Industries, LLC, American Wire Group, Inc., Nehring Electrical Works Company, Kris-Tech Wire, MWS Wire Industries Inc., AFL, LEONI Wire Inc., Fisk Alloy Inc., and Elecref Industries Inc.