The Russian grinding ball market in 2016-2020

Grinding balls are products made of steel or cast iron alloys used for grinding TPI in special drum mills, which makes them an important element of the manufacturing industry.

The consumption of grinding balls in Russia is growing at an average annual rate of 2% and reaches 427 thousand tons in 2020. Most (92%) of consumption is provided by domestic producers, the largest of which is NTMK (Evraz). Imported products are consumed to diversify suppliers and reduce the risk of mill downtime.

SBS Consulting experts predicted an increase in the consumption of grinding balls until 2025, based on the main trends of consumer industries.

Grinding balls consumption dynamics

Consumption in 2016-2020:

• The average annual growth rate of grinding balls consumption in Russia was 2% from 2016 to 2020.
• In 2020, the consumption of grinding balls reached 430.9 thousand tonnes.
• The main consumption is accounted for by the iron ore industry (40%), as well as non-ferrous metal processing and cement production.

Factors affecting consumption:

• Type of equipment installed
• Materials used to make the balls (cast iron or steel)
• Technological processes used (casting, plastic deformation, stamping, forging)

Production dynamics

Production in 2016-2020:

• The production of grinding balls in Russia shows inconsistent dynamics.
• In 2020, production growth of 4% was registered compared to 2019.
• NTMK (EVRAZ) has a 65% market share, having launched a new 134,000 tonne ball mill in 2018, which increased total capacity to 300,000 tonnes per annum.

Impact of import substitution:

• The decline in imports of grinding balls with a simultaneous increase in domestic production indicates a reorientation of consumers towards Russian products.
• Russia formed its core expertise in the production of steel balls to increase the utilisation of rolling capacity.

Imports and exports

Imports:

• Imports of grinding balls decreased significantly between 2016 and 2020.
• The main share of import supplies is cast iron balls, the volume of which amounted to about 20 thousand tonnes or RUB 953 million in 2020.
• The dynamics of imports by product type shows a decrease in supplies of cast iron balls and an increase in imports of steel balls.

Exports:

• Exports of grinding balls from Russia are insignificant compared to domestic consumption.
• The main export destinations include CIS countries and Eastern Europe.

Consumption forecast to 2025

General trends:

• The grinding balls market is expected to grow at a CAGR of 30% by 2025.
• The major growth drivers will be: Increasing demand for cement and rolled products in the construction industry; increase in non-ferrous metal production, with plans to commission 7 new deposits with a production capacity of 16 million tonnes of ore.

Consumption segments:

• The iron ore industry will remain the main consumer of grinding balls, with a share of around 40%.
• Consumption growth is expected in the sectors of non-ferrous metal ores processing and cement production.

Region-specific features

Main regional consumers:

• The main regional consumers of grinding balls are the Ural and western regions of Russia.
• The largest industrial enterprises and production facilities are located in these regions.

Conclusion

The grinding balls market in Russia is witnessing stable growth supported by increasing domestic production and decreasing imports. Major growth drivers include expansion of the construction sector and non-ferrous metal mining. Further increase in consumption of grinding balls is expected in the forecast period up to 2025, which will require further development of production capacity and introduction of advanced processing technologies.

In order to maintain the growth and competitiveness of the Russian grinding balls market, it is necessary to continue investing in modernisation of equipment and technological processes, as well as to expand export opportunities.