Nigeria: Hot-Rolled Free-Cutting Steel Market 2024

Hot-Rolled Free-Cutting Steel Market Size in Nigeria

In 2021, after two years of growth, there was significant decline in the Nigerien hot-rolled free-cutting steel market, when its value decreased by -93.4% to $X. Overall, consumption saw a sharp reduction. Over the period under review, the market hit record highs at $X in 2014; however, from 2015 to 2021, consumption stood at a somewhat lower figure.

Hot-Rolled Free-Cutting Steel Exports

Exports from Nigeria

For the third consecutive year, Nigeria recorded growth in overseas shipments of hot-rolled bars in free-cutting steels, which increased by 72% to X tons in 2021. Over the period under review, exports saw a significant increase. The pace of growth appeared the most rapid in 2017 when exports increased by 225%. The exports peaked in 2021 and are likely to continue growth in the immediate term.

In value terms, hot-rolled free-cutting steel exports rose to $X in 2021. In general, exports continue to indicate a prominent increase. The most prominent rate of growth was recorded in 2015 with an increase of 434%. The exports peaked at $X in 2016; however, from 2017 to 2021, the exports remained at a lower figure.

Exports by Country

Benin (X tons) was the main destination for hot-rolled free-cutting steel exports from Nigeria, with a 66% share of total exports. Moreover, hot-rolled free-cutting steel exports to Benin exceeded the volume sent to the second major destination, Ghana (X tons), twofold.

From 2012 to 2021, the average annual rate of growth in terms of volume to Benin amounted to +74.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Ghana (+66.0% per year) and Niger (+5.5% per year).

In value terms, Benin ($X) remains the key foreign market for hot-rolled bars in free-cutting steels exports from Nigeria, comprising 83% of total exports. The second position in the ranking was taken by Ghana ($X), with a 13% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value to Benin stood at +46.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Ghana (+19.0% per year) and Niger (-10.2% per year).

Export Prices by Country

The average hot-rolled free-cutting steel export price stood at $X per ton in 2021, with a decrease of -40.4% against the previous year. In general, the export price continues to indicate a dramatic contraction. The pace of growth appeared the most rapid in 2015 an increase of 213%. The export price peaked at $X per ton in 2016; however, from 2017 to 2021, the export prices failed to regain momentum.

Prices varied noticeably country of destination: the country with the highest price was Niger ($X per ton), while the average price for exports to Ghana ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Niger (-14.9%), while the prices for the other major destinations experienced a decline.

Hot-Rolled Free-Cutting Steel Imports

Imports into Nigeria

In 2021, purchases abroad of hot-rolled bars in free-cutting steels decreased by -81.8% to X tons for the first time since 2018, thus ending a two-year rising trend. Overall, imports saw a abrupt descent. The pace of growth appeared the most rapid in 2013 with an increase of 304% against the previous year. Over the period under review, imports attained the peak figure at X tons in 2014; however, from 2015 to 2021, imports remained at a lower figure.

In value terms, hot-rolled free-cutting steel imports dropped significantly to $X in 2021. Over the period under review, imports recorded a abrupt decrease. The pace of growth appeared the most rapid in 2013 when imports increased by 220% against the previous year. Over the period under review, imports reached the peak figure at $X in 2014; however, from 2015 to 2021, imports remained at a lower figure.

Imports by Country

In 2021, China (X tons) constituted the largest hot-rolled free-cutting steel supplier to Nigeria, accounting for a 70% share of total imports. Moreover, hot-rolled free-cutting steel imports from China exceeded the figures recorded by the second-largest supplier, India (X tons), fourfold. Germany (X tons) ranked third in terms of total imports with an 8.7% share.

From 2012 to 2021, the average annual growth rate of volume from China stood at -9.1%. The remaining supplying countries recorded the following average annual rates of imports growth: India (-15.2% per year) and Germany (-24.7% per year).

In value terms, China ($X) constituted the largest supplier of hot-rolled bars in free-cutting steels to Nigeria, comprising 57% of total imports. The second position in the ranking was held by India ($X), with a 25% share of total imports. It was followed by Germany, with a 14% share.

From 2012 to 2021, the average annual growth rate of value from China amounted to +1.6%. The remaining supplying countries recorded the following average annual rates of imports growth: India (-9.9% per year) and Germany (-23.7% per year).

Import Prices by Country

In 2021, the average hot-rolled free-cutting steel import price amounted to $X per ton, with an increase of 71% against the previous year. In general, import price indicated a noticeable increase from 2012 to 2021: its price increased at an average annual rate of +3.1% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, hot-rolled free-cutting steel import price increased by +93.0% against 2019 indices. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably country of origin: the country with the highest price was Germany ($X per ton), while the price for the United States ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by China (+11.8%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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