Market Rebound for Russian Welding Consumables

04/11/231

Analysis of the Russian Welding Consumables

Market

2

Executive Executive Summary Summary

Market Trends and Key Findings

Market Overview

Definition and Scope of Research

Key Figures

3

Solid Wires: The segment covered in this research service consists of solid wires with diameters ranging from 0.6 mm to 1.6 mm. The materials covered are carbon steel (mild steel), low alloy steel (1Cr 1Mo to 9Cr 1Mo), high alloy steel (Ni-based electrodes), stainless steel, aluminium, hard-facing and special metals such as copper, titanium, zirconium, magnesium, and cast iron.

Definitions and Scope of Research - Welding Consumables

Stick Electrode:The covered electrodes segment dicussed in this research service includes the stick electrodes with diameters ranging from 2.5 mm to 6.3 mm. The materials covered are carbon steel (mild steel), low-alloy steel (1Cr 1Mo to 9Cr 1Mo), high-alloy steel (Ni-based electrodes), stainless steel, aluminium, hard-facing and special metals such as copper, titanium, zirconium, magnesium, and cast iron.

Tubular Wires -mentioned as ‘FCW Wires’ in this consult: The segment covered in this research service is that of the tubular wires, of both, the metal-cored and flux-cored varieties, with diameters ranging from 1.5 mm to 3.5 mm. It includes both, the self-shielded and gas-shielded types. The materials considered are carbon steel (mild steel), low-alloy steel (1 Cr 1 Mo to 9 Cr 1 Mo), high-alloy steel (Ni-based electrodes), stainless steel, Aluminium, hard-facing and special metals such as copper, titanium, zirconium, magnesium, and cast iron.

Tubular Wires -mentioned as ‘FCW Wires’ in this consult: The segment covered in this research service is that of the tubular wires, of both, the metal-cored and flux-cored varieties, with diameters ranging from 1.5 mm to 3.5 mm. It includes both, the self-shielded and gas-shielded types. The materials considered are carbon steel (mild steel), low-alloy steel (1 Cr 1 Mo to 9 Cr 1 Mo), high-alloy steel (Ni-based electrodes), stainless steel, Aluminium, hard-facing and special metals such as copper, titanium, zirconium, magnesium, and cast iron.

SAW Wires and Fluxes: The segment covered in this research service is that of the submerged arc wires, with diameters ranging from 2.5 mm to 5.0 mm. It also incldes submerged arc flux, of both, the agglomerated and fused varieties. The materials covered are carbon steel (mild steel), low-alloy steel (1 Cr 1 Mo to 9 Cr 1 Mo), high-alloy steel (Ni-based electrodes), stainless steel, and hard-facing metals.

SAW Wires and Fluxes: The segment covered in this research service is that of the submerged arc wires, with diameters ranging from 2.5 mm to 5.0 mm. It also incldes submerged arc flux, of both, the agglomerated and fused varieties. The materials covered are carbon steel (mild steel), low-alloy steel (1 Cr 1 Mo to 9 Cr 1 Mo), high-alloy steel (Ni-based electrodes), stainless steel, and hard-facing metals.

4

Market Overview

Developments in the Russian Welding Consumables Market over the Past Five Years

Role of the approvers/ Government in the Russian Welding Consumables Market

Key end users in the Russian welding consumables market are :

Gas & oil extraction and distribution ( pipeline) Shipbuilding Atomic power engineering and energy machine

building industry Infrastructural /Architectural steel in construction Agro Industrial applications Transport

Of these the first three end users account for more than 50 percent of the total market.

• Increasing expansion of Chinese/Korean electrodes and wires with lower prices and increased quality has been witnessed.

• The share of semi automatic and robotic technologies has increased over the years. However, this has had minimal impact on the electrodes market, which continues to dominate the total welding consumables market owing to large domestic manufacturing of electrodes.

• Global financial crisis has restrained the market growth.

• Several domestic welding consumables manufacturers were forced to exit the market under stiff competition.

• The heavy machinery industrial enterprises, ship-building, power plant engineering, metal-working, electronics, automobile and the allied branches are located in north-western and central Russian regions.

• Predominantly welding manufacturers are located in the central region (Saint-Petersburg, Volgograd, Moscow), the southern region and Ural region and Novosibirsk Oblast and Kemerovo Oblast

Gosstandart Ukrsepro, Belsepro, and Gosgortekhnadzor are some of the major approvers in the Russian welding consumables market.

Approvals play a critical role in the high demanding industries such as pipeline and energy building machine industries.

The Government does not play a major role in the Russian welding consumables market. However, there is some support extended for the wires manufacturers, while electrodes face a heavy duty.

Key End Users

Key Regions Market Overview

5

Key Figures

Total Welding Consumables Market Total Welding Consumables Market

Stick ElectrodeStick Electrode Solid WiresSolid Wires FCW wiresFCW wires SAW Wires and FluxesSAW Wires and Fluxes

Volume in Tonnes 2009

108,320


108,320

Market Revenues 2009

€160.6 million


€160.6 million


2,240


2,240


€6.8 million


€6.8 million


8,940


8,940


€28.8 million


€28.8 million


29,000


29,000


€49.9 million


€49.9 million

Market Trend: Increasing Market Trend: Increasing Market Trend: IncreasingMarket Trend: Increasing Market Trend: StableMarket Trend: Stable Market Trend: IncreasingMarket Trend: Increasing

65.2% 20.3% 11.7%2.8%


€246.1 Million


€246.1 Million

Volumes in Tonnage 2009

148,500 Tonnes

Volumes in Tonnage 2009

148,500 Tonnes

Market Share by Revenues 2009 (%)

Market Share by Revenues 2009 (%)

6

Market Trends and Key Findings

Market Revenues

• The total welding consumables market in Russia accounted for €246.1 million in 2009, after a decline of 35.2 percent in 2009. Primary reason for this decline has been the low volumes, coupled with steep fall in average prices during recession. The market is expected to experience a high growth over the forecast period, as demands from end-user industries increase. The market revenues in 2015 are estimated to be €418.1 million, growing at a compound annual growth rate (CAGR) of 9.2 percent between 2009 and 2015.

Market Volume• The volumes in the welding consumables market faced a severe decline during recession as the domestic construction and

the automotive industries curtailed their demand for basic electrodes and wires. The volumes in 2009 accounted for 148,540 tonnes after a decline of 23.2 percent from the previous year. The volumes are forecast to recover in mid 2010 spurred by the new pipeline and the energy projects. The volume in 2015 is expected to be 232,600 tonnes. Product Trends

• The product trends in Russia are similar to those in China and India. The usage of stick electrodes has risen due to increased domestic production and increased penetration of low-cost manufacturers from other Asian and neighboring regions. Oil & gas and energy machine building industry has stimulated use of automatic equipment, thereby leading to increasing consumption of wires. This is expected to decrease the market share of electrodes gradually. However, this decline is very minimal as the stick electrodes are expected to dominate the market for another 15 to 20 years.

• End-user Trends Oil & gas is the largest end user for the welding consumables market in Russia. The need for high alloyed consumables by this end-user industry has by large increased imports from global participants such as ESAB, Bohler Welding Group (Germany), Kobe Steel (Japan), Schwarz & ThyssenKrupp (Germany), Lincoln Electric and ITW (the United States). These players have hence established themselves as key providers of wires and electrodes for this market.Energy machine building, construction, and shipbuilding companies are the other key end users.

• Domestic Manufacturing As a large percent of welding technologies being used in Russia are still very traditional, there are many small domestic manufacturers who have setup industrial units with relatively low capital.

7

WELDING

• Arc Welding Systems

• Resistance Welding

• Laser and Hybrid Welding

• Welding Consumables

• Mechanised Cutting

• Welding Applications Markets

2011Welding Market for Repairs and Maintenance

Global

2011World Arc welding Equipment and Filler Metals Market

Global

2011World Solid Wires Welding Market

Global

2011 Global Welding Equipment and Consumables Market for Power Industry ( wind, thermal, hydro and nuclar power)

Global

2011 CEO 360 degree perspective on welding /Megatrends in joining technologies

Global

2011 An analysis of the Environmental Hazards and Safety Procedures in the welding Industry

Global

2011World Aluminium Welding Market

Global

2011World Stick Electrode Market

Global

Welding Equipment and Consumables: Planned Reports for 2011

8

WELDING







2009 Global Welding Automation Market (Published) Global

2009 Global Welding in Energy Production and Distribution (Published) Global

2009 Welding Equipment Markets in Russia (WIP) Russia

2009 Welding Equipment Market in India (Published) APAC

2010 European welding consumables market (Published) EMEA

2010 Global Welding Market for Pipeline industry (Published) Global

Welding Equipment and Consumables: Recent Publications

2010 China welding equipment market (WIP) China

2010 Global Welding Robotics Market ( Published) Global

9

2008 Global Welding in Automotive Industry Global

2008360 Degree CEO perspective of the Global Welding Market

Global

2008 European Welding Consumables Markets EMEA

2008 Asian Market for Resistance Welding Equipment APAC

2008Indonesian Welding Equipment and Consumables Markets

APAC

2007 North American Arc Welding Equipment Markets NALA

2007 North American Filler Metals Market NALA

2007 European Welding Equipment Market EMEA

2007 European Laser Cutting Equipment Markets EMEA

2007Thailand Markets for Welding Equipment and Consumables

APAC

2007Indonesian Welding Equipment and Consumables Market

APAC

2007Chinese Welding Equipment and Consumables Markets

APAC

Welding Equipment and Consumables: Research Titles in our Warehouse

WELDING







Education

Market Rebound for Russian Welding Consumables