Updated Sep 22, 2022 05:06

Market for Hot-Rolled High Speed Steel Bar in Kuwait

Market Overview
Please note: Annual data for 2022 are preliminary and subject to revision
In , the Kuwaiti market for hot-rolled bars of high speed steel increased by % to $ for the first time since 2017, thus ending a three-year declining trend. Over the period under review, consumption recorded strong growth. As a result, consumption attained the peak level of $. From 2018 to , the growth of the market failed to regain momentum.

In value terms, hot-rolled high speed steel bar production expanded slightly to $ in estimated in export price. In general, production posted a significant expansion. The growth pace was the most rapid in 2011 with an increase of % against the previous year. Hot-rolled high speed steel bar production peaked at $ in 2019; however, from to , production remained at a lower figure.


Consumption
Please note: Annual data for 2022 are preliminary and subject to revision
In , consumption of hot-rolled bars of high speed steel increased by % to tons, rising for the second year in a row after two years of decline. Over the period under review, consumption recorded a resilient expansion. Hot-rolled high speed steel bar consumption peaked at tons in 2018; however, from 2019 to , consumption remained at a lower figure.

The value of the market for hot-rolled bars of high speed steel in Kuwait expanded sharply to $ in , surging by % 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 saw a buoyant increase. As a result, consumption reached the peak level of $. From 2018 to , the growth of the market remained at a lower figure.


Market Forecast
Please note: Annual data for 2022 are preliminary and subject to revision
Driven by increasing demand for hot-rolled high speed steel bar in Kuwait, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

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


Market Structure
Please note: Annual data for 2022 are preliminary and subject to revision
Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . Kuwait domestic supply is expected to continue its growth. Hot-rolled high speed steel bar market in Kuwait consists almost entirely of imported products. In recent years, import price have increased sharply. Despite the hike in price, Kuwait relies completely on foreign supplies: the volume of domestic output remains insufficient to satiate market demand. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Please note: Annual data for 2022 are preliminary and subject to revision
Kuwait remains a net exporter of hot-rolled high speed steel bar; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.