EUROFER: EU steel tube output to rise around three percent in 2014

According to the Economic and Steel Market Outlook 2014-2015/Q1 2014 Report from the Economic Committee of the European Steel Association (EUROFER), EU steel tube output fell 6.8 percent year on year in the third quarter of 2013. EU steel tube output is estimated to have declined by almost 4.5 percent in 2013.
 
EUROFER stated that the prospects for 2014 and 2015 have become somewhat brighter and it is generally expected that total steel tube production will register a moderate increase over the coming two years. The improvement is basically related to strengthening demand from major small-welded tube using sectors such as construction, automotive and metal goods as well due to some restocking in the distribution chain.
 
On the other hand, uncertainty remains with respect to the large welded tube sector. The start of the Southstream project in 2014 should benefit EU producers, because of the fact that the first stretch, requiring 700,000 mt of welded tubes, will be built from Bulgaria. This will give an advantage with respect to transport costs. Nevertheless, competition is foreseen to remain fierce due to global overcapacity.
 
According to EURFOER, EU production of steel tubes is expected to rise by around three percent in 2014 and five percent in 2015.