Free-Cutting Steel Wire Rod Market

The global market for wire rod of free-cutting steel is predicted to see continued growth over the next eight years, with an expected CAGR of +3.1% for consumption volume and +5.7% for market value from 2022 to 2030. In 2022, consumption reached 1.8M tons with an increase of 1.5% against the previous year. The top consumers in 2022 were Spain, the UK, and Italy. The market value expanded to $1.6B in 2022. Production decreased in 2022 after six years of growth. Import and export trends showed fluctuations, with global exports decreasing in 2022 after a two-year rising trend. Germany, France, Switzerland, and Spain were major exporters, while Italy and Germany were top importers. The average export price increased in 2022, with significant differences among countries. Overall, the free-cutting steel wire rod market is expected to see steady growth in the near future.

Market Forecast

Driven by increasing demand for wire rod of free-cutting steel worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +3.1% for the period from 2022 to 2030, which is projected to bring the market volume to 2.2M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +5.7% for the period from 2022 to 2030, which is projected to bring the market value to $2.4B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Wire Rod Of Free-Cutting Steel

In 2022, the amount of wire rod of free-cutting steel consumed worldwide reached 1.8M tons, with an increase of 1.5% against 2021. The total consumption volume increased at an average annual rate of +1.2% from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2016 with an increase of 8.8% against the previous year. Over the period under review, global consumption hit record highs in 2022 and is likely to continue growth in years to come.

The global free-cutting steel wire rod market size expanded remarkably to $1.6B in 2022, growing by 8.8% 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). The market value increased at an average annual rate of +1.3% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, the global market hit record highs in 2022 and is expected to retain growth in years to come.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were Spain (355K tons), the UK (296K tons) and Italy (220K tons), with a combined 50% share of global consumption. The Dominican Republic, Turkey, Japan, France, Canada, the United States, Russia, Germany, South Korea and Switzerland lagged somewhat behind, together accounting for a further 28%.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by South Korea (with a CAGR of +42.6%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest free-cutting steel wire rod markets worldwide were Italy ($246M), Spain ($241M) and the UK ($228M), with a combined 46% share of the global market. Turkey, the Dominican Republic, Canada, Japan, the United States, Germany, South Korea, Russia, France and Switzerland lagged somewhat behind, together accounting for a further 31%.

South Korea, with a CAGR of +44.8%, recorded the highest rates of growth with regard to market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of free-cutting steel wire rod per capita consumption in 2022 were the Dominican Republic (7.7 kg per person), Spain (7.5 kg per person) and the UK (4.4 kg per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consuming countries, was attained by South Korea (with a CAGR of +42.0%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Wire Rod Of Free-Cutting Steel

After six years of growth, production of wire rod of free-cutting steel decreased by -0.5% to 1.5M tons in 2022. Over the period under review, production, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2020 with an increase of 2.3% against the previous year. Global production peaked at 1.5M tons in 2021, and then fell in the following year.

In value terms, free-cutting steel wire rod production reduced slightly to $1.1B in 2022 estimated in export price. Overall, production saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 with an increase of 14%. Global production peaked at $1.2B in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

Production By Country

The countries with the highest volumes of production in 2022 were Spain (424K tons), the UK (318K tons) and France (151K tons), together accounting for 58% of global production. Switzerland, Japan, Germany, Russia and Luxembourg lagged somewhat behind, together accounting for a further 27%.

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the key producing countries, was attained by Luxembourg (with a CAGR of +1.7%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Wire Rod Of Free-Cutting Steel

Global free-cutting steel wire rod imports reduced sharply to 1M tons in 2022, which is down by -19.6% on the year before. Over the period under review, imports saw a slight decrease. The growth pace was the most rapid in 2021 when imports increased by 54% against the previous year. Over the period under review, global imports hit record highs at 1.4M tons in 2018; however, from 2019 to 2022, imports failed to regain momentum.

In value terms, free-cutting steel wire rod imports expanded modestly to $1.2B in 2022. In general, total imports indicated slight growth from 2012 to 2022: its value increased at an average annual rate of +1.8% 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 +115.3% against 2020 indices. The most prominent rate of growth was recorded in 2021 with an increase of 109% against the previous year. Over the period under review, global imports hit record highs in 2022 and are likely to see steady growth in the near future.

Imports By Country

In 2022, Italy (240K tons), distantly followed by Germany (111K tons), the Dominican Republic (86K tons), Turkey (83K tons) and the United States (59K tons) represented the key importers of wire rod of free-cutting steel, together comprising 57% of total imports. The following importers - Spain (46K tons), Canada (44K tons), South Korea (34K tons), Senegal (28K tons), Mauritius (27K tons), Taiwan (Chinese) (24K tons), Belgium (24K tons) and China (22K tons) - together made up 24% of total imports.

Imports into Italy increased at an average annual rate of +3.6% from 2012 to 2022. At the same time, Mauritius (+31.4%), Spain (+11.4%), the Dominican Republic (+11.0%), Turkey (+5.1%), Belgium (+4.8%) and South Korea (+2.2%) displayed positive paces of growth. Moreover, Mauritius emerged as the fastest-growing importer imported in the world, with a CAGR of +31.4% from 2012-2022. By contrast, Germany (-2.1%), China (-2.9%), the United States (-3.8%), Senegal (-4.7%), Taiwan (Chinese) (-7.3%) and Canada (-8.0%) illustrated a downward trend over the same period. While the share of Italy (+8.5 p.p.), the Dominican Republic (+5.7 p.p.), Turkey (+3.7 p.p.), Spain (+3.1 p.p.) and Mauritius (+2.5 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of the United States (-2 p.p.), Taiwan (Chinese) (-2.2 p.p.) and Canada (-4.6 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Italy ($296M) constitutes the largest market for imported wire rod of free-cutting steel worldwide, comprising 25% of global imports. The second position in the ranking was held by Germany ($130M), with an 11% share of global imports. It was followed by Turkey, with an 8.2% share.

In Italy, free-cutting steel wire rod imports increased at an average annual rate of +7.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Germany (+1.3% per year) and Turkey (+8.2% per year).

Import Prices By Country

The average free-cutting steel wire rod import price stood at $1,145 per ton in 2022, growing by 28% against the previous year. Overall, import price indicated moderate growth from 2012 to 2022: its price increased at an average annual rate of +2.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, free-cutting steel wire rod import price increased by +73.7% against 2020 indices. The most prominent rate of growth was recorded in 2021 an increase of 36%. Global import price peaked in 2022 and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Canada ($1,413 per ton), while Senegal ($488 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+5.0%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Wire Rod Of Free-Cutting Steel

In 2022, overseas shipments of wire rod of free-cutting steel decreased by -26.2% to 800K tons for the first time since 2019, thus ending a two-year rising trend. Overall, exports showed a noticeable decline. The pace of growth appeared the most rapid in 2021 with an increase of 63%. The global exports peaked at 1.3M tons in 2018; however, from 2019 to 2022, the exports stood at a somewhat lower figure.

In value terms, free-cutting steel wire rod exports fell modestly to $975M in 2022. Over the period under review, total exports indicated a slight increase from 2012 to 2022: its value increased at an average annual rate of +1.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +116.0% against 2020 indices. The pace of growth appeared the most rapid in 2021 when exports increased by 127% against the previous year. As a result, the exports attained the peak of $1B, and then reduced in the following year.

Exports By Country

In 2022, Germany (146K tons), France (125K tons), Switzerland (122K tons) and Spain (114K tons) was the major exporter of wire rod of free-cutting steel in the world, generating 63% of total export. It was distantly followed by Japan (58K tons), generating a 7.2% share of total exports. The UK (34K tons), Taiwan (Chinese) (29K tons), the Netherlands (23K tons), South Africa (22K tons), Italy (21K tons), the United States (19K tons) and Russia (14K tons) held a relatively small share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the leading exporting countries, was attained by Russia (with a CAGR of +112.5%), while the other global leaders experienced more modest paces of growth.

In value terms, Germany ($193M), Switzerland ($154M) and France ($153M) constituted the countries with the highest levels of exports in 2022, with a combined 51% share of global exports. Spain, Japan, the UK, the Netherlands, Taiwan (Chinese), the United States, Italy, South Africa and Russia lagged somewhat behind, together accounting for a further 42%.

Among the main exporting countries, Russia, with a CAGR of +81.7%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average free-cutting steel wire rod export price amounted to $1,219 per ton, with an increase of 29% against the previous year. Over the period under review, export price indicated measured growth from 2012 to 2022: its price increased at an average annual rate of +3.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, free-cutting steel wire rod export price increased by +79.2% against 2020 indices. The growth pace was the most rapid in 2021 when the average export price increased by 39% against the previous year. Over the period under review, the average export prices reached the maximum in 2022 and is likely to see steady growth in the immediate term.

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 the Netherlands ($1,743 per ton), while South Africa ($667 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 (+12.7%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform