Read our article to find out more about the challenges facing the Russian metalware industry in 2023 and the trends and prospects for the industry in 2024

The Russian hardware market demonstrated a clear and steady recovery in 2023. This was driven by a combination of factors, including the revival of industrial production and further growth in construction rates.

Key indicators and challenges of the industry

Russia's metalware industry is booming, with Prommetiz estimating 2.1 million tonnes of production in 2023. MMK-Metiz and other experts concur with this estimate. Compared to 2022, metalware production increased by 3%. However, 2022's figures are 10% lower than the record highs set in 2021.

Metalware manufacturers must overcome a significant challenge in 2023: a drop in exports of Russian products due to the current geopolitical situation. According to experts, supplies of local metalware abroad decreased by a third compared to 2023.

The second challenge is the change in demand for various products. There has been a downward trend in demand for nails and steel ropes in 2023. However, nails have become less popular as they are being replaced by self-tapping screws, while the demand for wire ropes has decreased due to the introduction of better-quality products on the market and, consequently, their longer service life.

Russia faces a third significant challenge in the form of rising imports of metalware products, particularly from China. In select sectors, international products account for over 70% of market share, while their cost is consistently lower than Russian offerings even when shipping and customs fees are taken into account.

Growth points and prospects

Russia's construction industry is the main consumer of metalware products. This applies not only to housing, but also to civil construction (schools, kindergartens, hospitals, office buildings, shopping centres), as well as engineering and infrastructure construction. The President of Russia has set the task to ensure the annual commissioning of 120 million square metres of housing by 2030, as well as to ensure the harmonious development of related infrastructure, both social, engineering and transport. The implementation of such ambitious plans will require tens, if not hundreds of millions of tonnes of various metalware. This affects not only construction directly, but also related sectors of the building materials industry, furniture industry, machinery and tool manufacturers.

Furthermore, other sectors of the economy are also gradually recovering from the "shock" of 2022. In 2023-2024, car plants under new brands were restarted in Moscow, St. Petersburg and Kaluga. A similar situation is observed in the automotive components market: a number of large production facilities, including those in Samara, St. Petersburg, have started operating again. These products also require a significant volume of metalware.

The demand trends for metalware are clear: demand for welding, high-strength and low-carbon wire, as well as calibrated steel is set to soar. The demand for self-tapping screws will stay at 2023 levels. And while the downward trend in demand for nails will continue, we are confident this will only be a blip on the radar.

It is important to remember that, despite the high demand for metalware, profitability in this industry is low. Therefore, government support measures are crucial in the current economic climate. These include tax benefits, loans on favourable terms and preferences for local suppliers.

Why it is important to exhibit at Fastenex 2024

The Russian metalware market has now fully recovered from the 2022 downturn. There are still some vacant or low-competitive segments where new players can gain an advantage.

There's no better way to do this than by participating in an industry event. Fastenex International Fasteners and Industrial Supply Exhibition is the most reliable B2B event on the market. It brings together manufacturers, distributors and consumers of metalware. The efficiency of the exhibition is confirmed by the fact that at the end of Fastenex 2023, 91% of exhibitors found new customers.

Fastenex 2023 welcomes 4,170 unique visitors from 54 regions of the Russian Federation and 14 other countries. At the same time, 67% of specialists hold a management position in their company. Various hardware and industrial fasteners were of interest to 58% of visitors.

Trends And Prospects Of The Russian Metalware Industry