Hot-Rolled Wire Rod in Coils Market

The article discusses the current state and future outlook of the global market for hot-rolled wire rods in coils, highlighting key trends in consumption, production, imports, and exports. The market is expected to show continued growth in both volume and value terms, with China leading the way in consumption, production, and imports. The article also points out significant fluctuations in prices and volumes over the years, with some countries experiencing rapid growth in both exports and imports. Overall, the market is forecasted to see gradual growth in the coming years.

Market Forecast

Driven by increasing demand for hot-rolled wire rods in coils worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.3% for the period from 2022 to 2030, which is projected to bring the market volume to 165M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.4% for the period from 2022 to 2030, which is projected to bring the market value to $165.7B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Hot-Rolled Wire Rods in Coils

Global hot-rolled wire rod in coils consumption contracted to 149M tons in 2022, shrinking by -2.6% on 2021. The total consumption volume increased at an average annual rate of +1.5% from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations in certain years. Global consumption peaked at 162M tons in 2019; however, from 2020 to 2022, consumption remained at a lower figure.

The value of the market for hot-rolled wire rods in coils worldwide dropped to $126.9B in 2022, which is down by -7.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, recorded a relatively flat trend pattern. As a result, consumption attained the peak level of $136.7B, and then shrank in the following year.

Consumption By Country

China (35M tons) remains the largest hot-rolled wire rod in coils consuming country worldwide, comprising approx. 24% of total volume. Moreover, hot-rolled wire rod in coils consumption in China exceeded the figures recorded by the second-largest consumer, India (15M tons), twofold. The third position in this ranking was taken by Japan (8.4M tons), with a 5.6% share.

From 2012 to 2022, the average annual growth rate of volume in China amounted to +2.5%. The remaining consuming countries recorded the following average annual rates of consumption growth: India (+2.3% per year) and Japan (-0.9% per year).

In value terms, China ($42.3B) led the market, alone. The second position in the ranking was taken by India ($14B). It was followed by Japan.

From 2012 to 2022, the average annual rate of growth in terms of value in China was relatively modest. In the other countries, the average annual rates were as follows: India (+0.0% per year) and Japan (-1.7% per year).

The countries with the highest levels of hot-rolled wire rod in coils per capita consumption in 2022 were South Korea (76 kg per person), the UK (75 kg per person) and France (74 kg per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by France (with a CAGR of +7.4%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Hot-Rolled Wire Rods in Coils

In 2022, the amount of hot-rolled wire rods in coils produced worldwide fell modestly to 149M tons, reducing by -2.7% against the year before. The total output volume increased at an average annual rate of +1.7% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 when the production volume increased by 13%. Global production peaked at 162M tons in 2019; however, from 2020 to 2022, production failed to regain momentum.

In value terms, hot-rolled wire rod in coils production fell to $123.8B in 2022 estimated in export price. Over the period under review, production, however, showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 when the production volume increased by 21%. As a result, production attained the peak level of $134.6B, and then contracted in the following year.

Production By Country

The country with the largest volume of hot-rolled wire rod in coils production was China (37M tons), accounting for 25% of total volume. Moreover, hot-rolled wire rod in coils production in China exceeded the figures recorded by the second-largest producer, India (16M tons), twofold. The third position in this ranking was taken by Japan (8.9M tons), with a 6% share.

From 2012 to 2022, the average annual growth rate of volume in China stood at +3.2%. In the other countries, the average annual rates were as follows: India (+2.7% per year) and Japan (-1.0% per year).

Imports

World Imports of Hot-Rolled Wire Rods in Coils

In 2022, the amount of hot-rolled wire rods in coils imported worldwide shrank to 21M tons, reducing by -8.9% against the previous year. In general, imports, however, continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 when imports increased by 20%. As a result, imports attained the peak of 23M tons, and then dropped in the following year.

In value terms, hot-rolled wire rod in coils imports expanded sharply to $21.3B in 2022. Over the period under review, total imports indicated a temperate increase from 2012 to 2022: its value increased at an average annual rate of +3.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +82.9% against 2020 indices. The pace of growth was the most pronounced in 2021 when imports increased by 72% against the previous year. Over the period under review, global imports reached the peak figure in 2022 and are expected to retain growth in years to come.

Imports By Country

The countries with the highest levels of hot-rolled wire rod in coils imports in 2022 were the Netherlands (1,311K tons), the United States (1,278K tons), Germany (1,021K tons), South Korea (885K tons), Italy (815K tons), Belgium (791K tons), Israel (746K tons), Romania (739K tons), Thailand (626K tons), Poland (620K tons), France (607K tons) and Spain (584K tons), together finishing at 47% of total import. Slovakia (527K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Poland (with a CAGR of +14.3%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the largest hot-rolled wire rod in coils importing markets worldwide were the United States ($1.5B), Germany ($1.3B) and Italy ($1.2B), together accounting for 19% of global imports. South Korea, the Netherlands, Belgium, Israel, Thailand, France, Romania, Poland, Spain and Slovakia lagged somewhat behind, together comprising a further 32%.

Poland, with a CAGR of +17.2%, saw the highest growth rate of the value of imports, in terms of the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

In 2022, the average import price for hot-rolled wire rods in coils amounted to $998 per ton, rising by 17% against the previous year. Overall, import price indicated a moderate increase from 2012 to 2022: its price increased at an average annual rate of +2.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, hot-rolled wire rod in coils import price increased by +67.1% against 2020 indices. The most prominent rate of growth was recorded in 2021 when the average import price increased by 43% against the previous year. Global import price peaked in 2022 and is likely to see gradual growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Italy ($1,443 per ton), while the Netherlands ($645 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Netherlands (+3.2%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Hot-Rolled Wire Rods in Coils

In 2022, after two years of growth, there was significant decline in overseas shipments of hot-rolled wire rods in coils, when their volume decreased by -9.8% to 21M tons. The total export volume increased at an average annual rate of +2.2% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2021 when exports increased by 13% against the previous year. As a result, the exports reached the peak of 24M tons, and then reduced in the following year.

In value terms, hot-rolled wire rod in coils exports amounted to $21.3B in 2022. In general, exports, however, saw a pronounced expansion. The pace of growth was the most pronounced in 2021 with an increase of 69%. The global exports peaked in 2022 and are likely to see gradual growth in the immediate term.

Exports By Country

Malaysia (2.5M tons) and China (2.3M tons) represented roughly 23% of total exports in 2022. It was followed by Germany (1.5M tons), Italy (1.3M tons) and Turkey (1.1M tons), together making up an 18% share of total exports. Spain (817K tons), Japan (776K tons), Russia (715K tons), Indonesia (701K tons), the Czech Republic (638K tons), Belgium (603K tons), Poland (590K tons) and the United Arab Emirates (574K tons) held a minor share of total exports.

From 2012 to 2022, the biggest increases were recorded for Malaysia (with a CAGR of +35.6%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest hot-rolled wire rod in coils supplying countries worldwide were China ($2.2B), Germany ($1.7B) and Malaysia ($1.7B), together accounting for 26% of global exports.

Malaysia, with a CAGR of +34.0%, recorded the highest growth rate of the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average export price for hot-rolled wire rods in coils stood at $996 per ton in 2022, with an increase of 17% against the previous year. Overall, export price indicated a tangible increase from 2012 to 2022: its price increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, hot-rolled wire rod in coils export price increased by +73.5% against 2020 indices. The most prominent rate of growth was recorded in 2021 an increase of 49%. The global export price peaked in 2022 and is expected to retain growth in years to come.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Japan ($1,455 per ton), while Malaysia ($652 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+4.2%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform