Industry Focus

Article by Shervin Shahidi Hamedani
Copyright owned by Fastener World

2022-2023 Fastener Trade
Analysis in

Kazakhstan,
Uzbekistan, andTurkmenistan

Introduction
Central Asia, a region characterized by its diverse
economic landscape and strategic location connecting
Europe and Asia, has experienced significant growthin the fastener trade industry. Fasteners, including
nuts, bolts, screws, and rivets, play a crucial role inthe manufacturing and construction sectors, serving
as essential components to hold various structures andmachinery together.
In this article, we will conduct a comprehensive
trade analysis of the fastener industry in Central Asia
during the period of 2022-2023, with a specific focus on
Kazakhstan, Uzbekistan, and Turkmenistan, the threemajor economies in the region. We will explore thevarious aspects of the fastener trade landscape, examining
market dynamics and opportunities that have influenced
the industry's growth during this time frame.

Economic Growth and the Fastener
Industry in Central Asia
Economic growth in Central Asia is projected toremain flat at 3.9 percent in 2023, dragged down byweak external demand, rising inflation and global supply
chain disruptions, according to the World Bank’s latest
Global Economic Prospects report released in early 2022.
The growth in 2022 reached 3.9 percent, down from 5.1
percent in 2021.

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Fastener World no.202/2023 惠達雜誌

Central Asian economies have proven resilient to adverse geopolitical
headwinds related to Russia’s war on Ukraine. Most economies in theregion have strengthened their trade cooperation with Russia, serving as
intermediaries and supplying their own products into the vacuum created bythe withdrawal of international firms from the Russian market.
While specific statistics for the demand of fasteners in Central Asia in
2023 are not widely available, it is essential to highlight that the increased
focus on infrastructure development in the region has indeed led to a
substantial surge in demand for fasteners. Governments and private
sectors in Central Asian countries have invested significant funds invarious infrastructure projects, driving the need for quality fasteners
in construction and transportation projects. The growing emphasis onbuilding and modernizing transportation networks, bridges, roads, railways,
and buildings has contributed to the rising demand for fasteners, making
it a critical component in supporting the region's economic growth anddevelopment.
In Kazakhstan, the "Nurly Zhol" infrastructure program, for instance,
has been a key driver of increased fastener demand. This comprehensive
program focuses on enhancing transportation infrastructure and connectivity
across the country. As a result, the demand for fasteners used in road and rail
construction projects has experienced a substantial rise. The constructionof new roads, bridges, and railways has necessitated a large quantity offasteners to hold various structures together and ensure the safety andreliability of these transportation networks.
In Uzbekistan, government efforts to modernize transportation networks
and invest USD 33 billion in the oil and gas sector by 2025 have spurreddemand for fasteners. The construction market, valued at USD 13.1 billion in2022, is projected to achieve over 4% AAGR during 2024-2027, sustaining
the need for fasteners in various infrastructure projects and urbanization.

Industry Focus
Turkmenistan's ambitious development projects, including large-scale
infrastructure initiatives, have generated substantial demand for fasteners.
As the country focuses on improving its overall infrastructure, fasteners havebecome indispensable in the construction of various projects such as roads,
bridges, buildings, and industrial facilities. Arkadag, a newly built USD1.5
billion city, has been a major part of this initiative, requiring an increased
supply of fasteners to secure various components and materials. Moreover, thedevelopment of industrial zones has also necessitated the use of fasteners inconstructing factories and warehouses.
While specific data on the exact increase in fastener demand in each country
may vary, it is evident that the emphasis on infrastructure development has
played a significant role in boosting the fastener trade industry in Central Asia
during the specified period.
Central Asian countries actively participated in trade initiatives such as theBelt and Road Initiative (BRI) and the Eurasian Economic Union (EAEU).
These initiatives facilitated trade and investment flows, enabling fastener
manufacturers in the region to access broader markets and enhance theircompetitiveness on the global stage.

Kazakhstan
As the largest economy in Central Asia, Kazakhstan
has emerged as a key player in the fastener tradeindustry. The country's proactive approach to diversify
its economy away from oil dependency has led to
substantial investments in the manufacturing sector.
Kazakhstan's manufacturing growth, particularly
in automotive and construction industries, hasboosted the demand for fasteners.
The total imported value of fasteners (HS Code7318) in Kazakhstan increased by approximately
30.15% from 2021 to 2022. This growth reflects thecountry's continuous efforts to invest in infrastructure
and construction projects, leading to an increased
demand. Table 1 exhibits fastener imports (in USDMillion) into Kazakhstan in 2021 and 2022.

Table 1. Fastener Imports(in USD Million) into Kazakhstan

Fig. 1. Kazakhstan - 2022 Fastener Export Value (in USD Million)
Bosnia and Herzegovina

0.027

Türkiye

0.052

The US

0.06

Tajikistan

0.089

Armenia

0.104

Azerbaijan

0.118

Belarus0.291

Uzbekistan
Kyrgyzstan

0.571
1.037

Russia4.784

WorldSouthKorea toUzbekistan
in from20232021 to 2022. InKazakhstan's fastenerfrom
exportsexperienced
substantial
growth2021, the3.5export value was USD 2.6 million, which significantly increased to about USD
7.33 in 2022 (Fig. 1). This remarkable growth of approximately 181% indicates a surge indemand for
3 Kazakhstan's fastener products in international markets during the specified
period. The significant increase in exports highlights the country's competitiveness andability to meet the fastener demands of various regions, making Kazakhstan a noteworthy
2.5player in the global fastener trade industry.

The significant
export value of fasteners to Russia, amounting to USD 4.784 million,2
highlights the close economic ties between Kazakhstan and its neighbouring country. Thegeographic
1.5 proximity and strong trade relations between the two nations contribute tothis substantial export flow. Moreover, the considerable amounts of fasteners exported toother Central Asian countries, such as Kyrgyzstan and Uzbekistan, indicate the region's
1collaborative efforts to meet fastener demands and foster economic integration. This intraregional trade underscores Kazakhstan's pivotal role in supplying fasteners to neighbouring
0.5
countries, bolstering regional economic cooperation and development.
0Fastener
World no.202/2023 惠達雜誌
Jan-23
Feb-23
Value

2021

2022

131.85171.29China

51.83273.213

Russia32.74

35.046

Italy

3.808

8.851

US

7.186

8.577

Germany

6.315

7.169

Türkiye

4.015

6.109

South Korea

2.108

4.00

UK

3.28

3.123

France

2.404

2.37

Sweden

4.491

2.009

7.325

The growth in fastener imports into Kazakhstan in 2022 signals the country's ongoing
infrastructure and construction development efforts. China continues to be the dominantsupplier, while Kazakhstan's diverse sourcing from countries like Italy, the UnitedStates, and Türkiye showcases its willingness to engage with global markets. The United
Kingdom, France, and Sweden experienced declines in fastener imports to Kazakhstan
in 2022 compared with 2021. This could be due to various factors, including changes inmarket demand, shifts in sourcing strategies, or economic conditions in both exporting andimporting countries. Overall, the increasing import values of fasteners reflect the country'scommitment to building aFig.
strongsustainableinfrastructureforMillion)
its growing economy.
2. andFastener
Imports(in USD272

in 2021 and 2022

ImportOrigins
WorldMar-23

Apr-23May-23

Uzbekistan
Uzb ek ist a n , w it h it s si z able
population and abundant resources,
has been actively pursuing economic
reforms to attract foreign investmentsa nd moder n ize it s i ndust r ies. As
a result, the manufacturing sector
experienced significant expansion
during 2022-2023, leading to increased
demand for fasteners.
The construction industry, inparticular, witnessed considerable
growth in Uzbekistan, with various
infrastructure projects underway.
This surge in construction activities
fuelled the demand for fasteners,
as they are essential components inbuilding structures and machinery.
Uzbekistan's strategic position inCentral Asia makes it an attractive
t rade pa r t ner for reg iona l a ndinternational markets. The country'sIndustry Focus
efforts to improve trade facilitation and engage in cross-border trade
initiatives have presented opportunities for fastener manufacturers to tap into
diverse markets. The table below shows the fastener imports to Uzbakistan (inUSD Million) in 2021 and 2022.
Overall, the data indicates a surge in the demand for fasteners inUzbekistan, as evidenced by the significant growth in fastener exports
from various countries to the region. The substantial increase in exports
from Mexico and the UAE highlights the growing engagement of emerging
exporters in the Uzbekistan market. South Korea and China continue tohold dominant positions as major suppliers of fasteners to Uzbekistan,reflecting their strong presence in the Central Asian market.
Uzbekistan's fastener exports experienced substantial growth over theyears. The export value increased from 844,000 USD in 2018 to 7,328,000
USD in 2022. This remarkable growth of approximately 770% indicatesa significant expansion in the country's fastener trade. The years 2021 and2022 witnessed accelerated growth in Uzbekistan's fastener exports. TheUSD Million)
Fig. 1.value
Kazakhstan- 2022inFastenerExporttoValue
exportnearly doubled
2021 compared
2020, (inreaching
4,596,000
USD.
Thisgrowthtrend
continuedin2022,withtheexport
value
reaching
Bosnia and Herzegovina
0.0277,328,000 USD. Such rapid growth highlights Uzbekistan's successful efforts
Türkiyeits fastener
0.052 exports to meet the demands of global markets.
in expanding
0.06 imports from South Korea (the top fastener exporter)
The ThedataUS
on fastenerto Uzbekistan
Tajikistan in 2023
0.089indicates fluctuating monthly values, with the highest
import recorded in February and a sharp decline in May. The fluctuations inArmenia
0.104
fastenerimport fromKorea to Uzbekistan in 2023 may also be influenced bythe Azerbaijan
ongoing Russian-Ukrainianwar. Geopolitical tensions and disruptions
0.118
in trade routes due to the conflict can impact the overall demand and supply
Belarus
0.291
dynamics in the region, including the import of fasteners. Instabilities in
0.571by the war could lead to changes in procurement
theUzbekistan
global market caused
patterns
andaffect
thetiming and volume of imports, contributing to theKyrgyzstan
1.037
observed variations in monthly import values.
Russia4.784
In terms of the fastener exports, the data reflects the growing demand forWorldfasteners in its neighbouring countries. The significant increase 7.325
Uzbekistan'sin exports to Russia presents an opportunity for Uzbekistan to further expand
its presence in this key market. As Uzbekistan's fastener industry continues
to grow, maintaining strong trade relationships with neighbouring countries
and exploring new markets will be crucial for sustained export growth in thecoming years. Table 3 below exhibits the fastener exports from Uzbekistan
to the global market (in USD Million) in 2021 and 2022.

Import Origins

2021

2022

World

55.43673.687

South Korea

23.79936.573China

12.16712.601Türkiye

4.855

5.849

Russia

6.361

5.309

Mexico

0.009

2.307

UAE

0.194

1.512

US

0.487

1.196

India

0.664

1.039

Japan

0.921

0.948

Brazil

0.956

0.848

Table 3. Fastener Exports (in USDMillion) from Uzbekistan to the Global
Market in 2021 and 2022
ExportDestinations
World

2021

2022

4.596

7.328

Kyrgyzstan

1.847

1.964

Azerbaijan

0.693

1.476

Kazakhstan

0.881

1.465

Russia

0.08

1.093

Tajikistan

0.792

0.815

China

0.123

0.303

Turkmenistan

0.079

0.149

Turkmenistan
Turkmenistan, known for its vast natural
gas reserves, has been actively diversifying its
economy beyond the energy sector. During 20222023, the country focused on industrializationand infrastructure development, which led to anincreased demand for fasteners.

Fig. 2. Fastener Imports (in USD Million)
from South Korea to Uzbekistan in 2023
3.5
3

The constr uction sector in Turk menistan
witnessed signif ica nt growth, with several
large-scale infrastructure projects underway.
These projects, including the construction ofindustrial facilities, bridges, and transportation
networks, spurred the demand for fasteners inthe country.

2.5
2
1.5
10.5
0Value(USD Million)

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Table 2. Fastener Imports (in USD Million)
into Uzbakistan in 2021 and 2022

Jan-23

Feb-23Mar-23Apr-23May-23

1.677

3.052

2.531

2.106

1.044

Fastener World no.202/2023 惠達雜誌

Tu rk men ist a n's cha l lenges i n a ccessi ng
international markets have been mitigated to someextent through cooperation with neighbouring
countries like Kazak hstan and Uzbek istan.
Participating in regional trade initiatives andfostering bilateral agreements have openedavenues for Turkmenistan's fastener manufacturers
to access broader markets and strengthen theirpresence in the industry.

Industry Focus
Turkmenistan's fastener imports witnessed a substantial increase from4.728 million USD in 2020 to 12.143 million USD in 2022. This remarkable
growth of over 150% in just two years indicates a significant surge in thecountry's demand for fasteners.
China remains a major exporter of fasteners to Turkmenistan, showcasing
its significant presence in the Central Asian market. The export value of 6.544
million USD in 2022 further solidifies China's position as a dominant player insupplying fasteners to Turkmenistan's construction and infrastructure projects.
Türkiye's fastener exports to Turkmenistan increased to 4,824 million USD
in 2022 from 2,644 million USD in 2020 and 4,447 million USD in 2021. This
growth indicates Türkiye's expanding market share and competitiveness inmeeting Turkmenistan's fastener demands.
The data on fastener exports from Türkiye to Uzbekistan in 2023 shows
fluctuations in values from January to April. January recorded the highest
export value of 474,000 USD, followed by a steady decline in February, March,and April, reaching 242,000 USD, 214,000 USD, and 213,000 USD, respectively.
These fluctuations highlight dynamic market conditions and potential seasonal
factors influencing the demand for fasteners between the two countries.
Businesses should consider these variations to effectively plan and adjust theirexport strategies to meet Uzbekistan's changing demands throughout the year.
Uzbekistan's fastener export data shows relatively modest figures and limited
recorded data, indicating a smaller and less developed fastener manufacturingindustry compared to major exporting nations. The sparse data may also suggest
a greater reliance on importing fasteners to meet domestic demands, resulting
in fewer opportunities for substantial exports. Geopolitical and economic
factors, such as trade agreements and regional dynamics, could further influence
Uzbekistan's position in the global fastener market.

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Conclusion
The fastener trade analysis for Central Asia
during 2022-2023 highlights the region's economic
growth and the opportunities it presents forfastener manufacturers in Kazakhstan, Uzbekistan,
and Turkmenistan. As these countries strive
to diversify their economies and participate inregional and international trade initiatives, thedemand for fasteners is set to increase. However,challenges related to supply chain disruptions,
technology adoption, and geopolitical factors must
be addressed to ensure sustainable growth andcompetitiveness in the global fastener market. Byleveraging their strategic geographic locations,fostering regional cooperation, and investing ininnovation, Central Asian fastener manufacturers
can solidify their position in the industry andcontr ibute to the region's overall econom icdevelopment.
Sources:
ITC Trade Map, Trade statistics for international
business development.
European Bank for Reconstruction and Development,
Central Asia remains resilient to geopolitical
headwinds.
Global Data, Uzbekistan Construction Market
Report Overview