Coated Arc-Welding Electrode Market

The article discusses the expected growth in the global market for coated arc-welding electrodes from 2022 to 2030. It provides insights into consumption trends, production volumes, and import/export statistics, highlighting key players such as China, the United States, and Turkey. The analysis points to a positive outlook for the market, with potential for steady growth in both volume and value terms.

Market Forecast

Driven by rising demand for coated arc-welding electrode worldwide, the market is expected to start an upward consumption trend over the next eight-year period. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +0.5% for the period from 2022 to 2030, which is projected to bring the market volume to 1.4M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +2.5% for the period from 2022 to 2030, which is projected to bring the market value to $5.6B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Coated Base Metal Electrodes For Electric Arc-Welding

In 2022, consumption of coated base metal electrodes for electric arc-welding increased by 0.1% to 1.4M tons for the first time since 2017, thus ending a four-year declining trend. Over the period under review, consumption, however, recorded a pronounced reduction. Over the period under review, global consumption hit record highs at 2M tons in 2012; however, from 2013 to 2022, consumption remained at a lower figure.

The global coated arc-welding electrode market size totaled $4.6B in 2022, picking up by 2% 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). Overall, consumption, however, showed a perceptible descent. The most prominent rate of growth was recorded in 2017 when the market value increased by 4.4%. Over the period under review, the global market reached the peak level at $7.2B in 2012; however, from 2013 to 2022, consumption failed to regain momentum.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (263K tons), the United States (220K tons) and India (104K tons), together accounting for 42% of global consumption. Turkey, Indonesia, Japan, Brazil, Belarus, Mexico, Russia, the United Arab Emirates and Ukraine lagged somewhat behind, together comprising a further 23%.

From 2012 to 2022, the biggest increases were recorded for Belarus (with a CAGR of +17.9%), while consumption for the other global leaders experienced a decline in the consumption figures.

In value terms, the largest coated arc-welding electrode markets worldwide were the United States ($1.5B), Turkey ($771M) and China ($265M), together comprising 55% of the global market. India, Japan, Brazil, Mexico, Indonesia, Belarus, Russia, the United Arab Emirates and Ukraine lagged somewhat behind, together accounting for a further 16%.

Belarus, with a CAGR of +17.1%, 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 mixed trends in the market figures.

The countries with the highest levels of coated arc-welding electrode per capita consumption in 2022 were Belarus (3,086 kg per 1000 persons), the United Arab Emirates (2,161 kg per 1000 persons) and Turkey (1,035 kg per 1000 persons).

From 2012 to 2022, the biggest increases were recorded for Belarus (with a CAGR of +18.1%), while consumption for the other global leaders experienced a decline in the per capita consumption figures.

Production

World Production of Coated Base Metal Electrodes For Electric Arc-Welding

In 2022, production of coated base metal electrodes for electric arc-welding increased by 2% to 1.4M tons for the first time since 2017, thus ending a four-year declining trend. Over the period under review, production, however, saw a pronounced slump. The growth pace was the most rapid in 2017 when the production volume increased by 10%. Over the period under review, global production reached the maximum volume at 2.1M tons in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

In value terms, coated arc-welding electrode production fell slightly to $4.7B in 2022 estimated in export price. Overall, production, however, continues to indicate a pronounced decline. The growth pace was the most rapid in 2018 with an increase of 13%. Global production peaked at $7.3B in 2019; however, from 2020 to 2022, production remained at a lower figure.

Production By Country

The country with the largest volume of coated arc-welding electrode production was China (580K tons), comprising approx. 40% of total volume. Moreover, coated arc-welding electrode production in China exceeded the figures recorded by the second-largest producer, the United States (215K tons), threefold. The third position in this ranking was taken by Turkey (116K tons), with an 8% share.

In China, coated arc-welding electrode production remained relatively stable over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: the United States (-5.1% per year) and Turkey (-0.3% per year).

Imports

World Imports of Coated Base Metal Electrodes For Electric Arc-Welding

In 2022, supplies from abroad of coated base metal electrodes for electric arc-welding decreased by -11.6% to 536K tons, falling for the third year in a row after four years of growth. Overall, imports showed a mild reduction. The most prominent rate of growth was recorded in 2013 with an increase of 4.7%. Global imports peaked at 629K tons in 2019; however, from 2020 to 2022, imports stood at a somewhat lower figure.

In value terms, coated arc-welding electrode imports contracted modestly to $1.2B in 2022. Over the period under review, imports showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 when imports increased by 16% against the previous year. Over the period under review, global imports reached the maximum at $1.4B in 2013; however, from 2014 to 2022, imports stood at a somewhat lower figure.

Imports By Country

The countries with the highest levels of coated arc-welding electrode imports in 2022 were Indonesia (33K tons), Russia (25K tons), the United Arab Emirates (25K tons), Democratic People's Republic of Korea (19K tons), the Czech Republic (17K tons), Kazakhstan (17K tons), the United States (14K tons), Iraq (14K tons), Uzbekistan (13K tons), the Philippines (12K tons), Singapore (9.4K tons) and Thailand (9.2K tons), together finishing at 39% of total import. Ghana (9K tons) held a relatively small share of total imports.

From 2012 to 2022, the biggest increases were recorded for Democratic People's Republic of Korea (with a CAGR of +18.6%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, Indonesia ($58M), Russia ($53M) and the Czech Republic ($48M) appeared to be the countries with the highest levels of imports in 2022, together accounting for 13% of global imports. The United States, the United Arab Emirates, Kazakhstan, Singapore, Thailand, Iraq, Uzbekistan, the Philippines, Democratic People's Republic of Korea and Ghana lagged somewhat behind, together comprising a further 19%.

Democratic People's Republic of Korea, with a CAGR of +12.3%, recorded the highest rates of growth with regard to 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 coated arc-welding electrode import price amounted to $2,296 per ton, picking up by 12% against the previous year. Overall, the import price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 when the average import price increased by 18% against the previous year. Over the period under review, average import prices hit record highs in 2022 and is likely to see steady growth in the near future.

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 the United States ($3,090 per ton), while Democratic People's Republic of Korea ($624 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Kazakhstan (+5.8%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Coated Base Metal Electrodes For Electric Arc-Welding

In 2022, shipments abroad of coated base metal electrodes for electric arc-welding decreased by -6.7% to 595K tons, falling for the third consecutive year after two years of growth. Over the period under review, exports continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2013 when exports increased by 5.4% against the previous year. As a result, the exports attained the peak of 688K tons. From 2014 to 2022, the growth of the global exports remained at a lower figure.

In value terms, coated arc-welding electrode exports reached $1.3B in 2022. Overall, exports saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 when exports increased by 17% against the previous year. Over the period under review, the global exports hit record highs at $1.4B in 2013; however, from 2014 to 2022, the exports stood at a somewhat lower figure.

Exports By Country

China dominates exports structure, finishing at 324K tons, which was near 54% of total exports in 2022. It was distantly followed by Turkey (29K tons), generating a 4.8% share of total exports. Hungary (17K tons), India (15K tons), the Czech Republic (15K tons), Austria (13K tons), Malaysia (13K tons), Japan (11K tons), Vietnam (11K tons), Thailand (11K tons) and Romania (9.9K tons) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to coated arc-welding electrode exports from China stood at +1.2%. At the same time, Vietnam (+15.5%), India (+4.9%), Austria (+3.7%), Thailand (+1.9%) and Romania (+1.7%) displayed positive paces of growth. Moreover, Vietnam emerged as the fastest-growing exporter exported in the world, with a CAGR of +15.5% from 2012-2022. Japan and Turkey experienced a relatively flat trend pattern. By contrast, Malaysia (-2.2%), Hungary (-4.2%) and the Czech Republic (-8.6%) illustrated a downward trend over the same period. China (+10 p.p.) significantly strengthened its position in terms of the global exports, while the Czech Republic saw its share reduced by -3.2% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($403M) remains the largest coated arc-welding electrode supplier worldwide, comprising 31% of global exports. The second position in the ranking was taken by the Czech Republic ($60M), with a 4.6% share of global exports. It was followed by Austria, with a 4.5% share.

From 2012 to 2022, the average annual rate of growth in terms of value in China stood at +3.7%. In the other countries, the average annual rates were as follows: the Czech Republic (-4.8% per year) and Austria (+3.4% per year).

Export Prices By Country

In 2022, the average coated arc-welding electrode export price amounted to $2,177 per ton, increasing by 11% against the previous year. Overall, the export price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 when the average export price increased by 21% against the previous year. The global export price peaked in 2022 and is likely to continue growth in the near future.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Austria ($4,564 per ton), while China ($1,244 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Romania (+7.5%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform