Indonesia Steel Wire Market Report: Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025-2030

Indonesia Steel Wire Market valued at USD 1.0 Bn, driven by construction, automotive, and infrastructure growth, with key segments in galvanized wire and construction end-use.

The Indonesia Steel Wire Market is valued at USD 1.0 billion, based on a five-year historical analysis of the steel wire rods segment, which forms the core of the steel wire market. This growth is primarily driven by the increasing demand for steel wire in construction, automotive, and industrial applications, alongside the country's rapid urbanization and infrastructure development initiatives. The construction sector remains the largest revenue-generating segment, while industrial manufacturing is witnessing the fastest growth, supported by government-backed infrastructure projects and rising domestic manufacturing activity.

Key regions dominating the market include Java and Sumatra, where industrial activities are concentrated. Java, being the economic hub, has a high demand for steel wire due to extensive construction projects, while Sumatra benefits from its natural resources and growing industrial base.

The Minister of Industry Regulation No. 35/M-IND/PER/3/2023, issued by the Ministry of Industry in 2023, mandates the use of domestically produced steel - including steel wire - for public infrastructure projects. This regulation requires government-funded infrastructure developments to prioritize local steel wire procurement, aiming to boost domestic manufacturing, ensure compliance with Indonesian National Standards (SNI), and reduce reliance on imports.

Indonesia Steel Wire Market Segmentation

By Type:

The market is segmented into various types of steel wire, including Galvanized Steel Wire, Stainless Steel Wire, High Carbon Steel Wire, Low Carbon Steel Wire, Spring Steel Wire, Steel Wire Rods, PC (Prestressed Concrete) Wire, and Others. Each type serves different applications and industries, catering to specific consumer needs. Galvanized steel wire dominates due to its extensive use in construction and infrastructure, while stainless and high carbon steel wires are preferred for automotive and industrial manufacturing.

By End-User:

The end-user segmentation includes Construction, Automotive, Industrial Manufacturing, Power & Energy, Agriculture, Electrical, and Others. Each sector utilizes steel wire for various applications, reflecting the diverse demand across industries. Construction is the leading end-user, followed by automotive and industrial manufacturing, driven by ongoing infrastructure expansion and increased vehicle production.

Indonesia Steel Wire Market Competitive Landscape

The Indonesia Steel Wire Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Krakatau Steel (Persero) Tbk, PT Gunung Raja Paksi Tbk, PT Ispat Indo, PT The Master Steel Mfg, PT Jakarta Cakratunggal Steel Mills, PT Inter World Steel Mills Indonesia, PT Lautan Steel Indonesia, PT Beton Jaya Manunggal Tbk, PT Sutindo, PT Bumi Kaya Steel Industries, PT Hanil Jaya Steel, PT Steel Pipe Industry of Indonesia Tbk (SPINDO), PT Citra Tubindo Tbk, PT Tatalogam Lestari, PT Sari Daya Plasindo contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia Steel Wire Market Industry Analysis

Growth Drivers

Increasing Construction Activities:

The construction sector in Indonesia is projected to reach IDR 1,422.7 trillion by in future, driven by urbanization and population growth. This surge in construction activities is expected to increase the demand for steel wire, which is essential for reinforcing concrete structures. The government’s commitment to building 1 million houses annually further supports this growth, creating a robust market for steel wire manufacturers to meet rising needs.

Rising Demand from Automotive Sector:

Indonesia's automotive industry is anticipated to produce over 1.65 million vehicles in future, reflecting a 10% increase from previous years. This growth is significantly boosting the demand for steel wire, which is used in various automotive components. The shift towards electric vehicles is also creating new opportunities for specialized steel wire applications, further enhancing market prospects in this sector.

Infrastructure Development Initiatives:

The Indonesian government has allocated IDR 422.7 trillion for infrastructure projects in future, focusing on transportation and public utilities. This investment is expected to drive demand for steel wire, as it is crucial for construction and reinforcement in infrastructure projects. The ongoing development of toll roads, bridges, and railways will significantly contribute to the growth of the steel wire market in the region.

Market Challenges

Fluctuating Raw Material Prices:

The steel wire industry faces challenges due to volatile raw material prices, particularly iron ore and scrap steel. In recent periods, iron ore prices have fluctuated between USD 90 to USD 130 per ton, impacting production costs. Such price instability can lead to reduced profit margins for manufacturers, making it difficult to maintain competitive pricing in the market.

Competition from Imported Products:

The influx of imported steel wire products, particularly from China and India, poses a significant challenge to local manufacturers. In recent periods, imports accounted for approximately 30% of the total steel wire consumption in Indonesia. This competition often leads to price undercutting, forcing local producers to innovate and improve efficiency to retain market share.

Indonesia Steel Wire Market Future Outlook

The Indonesia steel wire market is poised for significant growth, driven by increasing construction activities and government infrastructure initiatives. As the automotive sector expands, the demand for specialized steel wires will also rise. However, manufacturers must navigate challenges such as fluctuating raw material prices and competition from imports. Embracing technological advancements and sustainable practices will be crucial for local producers to enhance their competitiveness and capitalize on emerging opportunities in the market.

Market Opportunities

Technological Advancements in Production:

The adoption of advanced manufacturing technologies, such as automation and AI, can enhance production efficiency and reduce costs. By investing in these technologies, local manufacturers can improve product quality and meet the growing demand for high-strength steel wires, positioning themselves favorably in the market.

Government Infrastructure Projects:

The ongoing government commitment to infrastructure development presents a significant opportunity for steel wire manufacturers. With IDR 422.7 trillion allocated for projects in future, companies can secure contracts for supplying steel wire, thereby increasing their market presence and driving revenue growth in the coming years.