EUROFER expects modest recovery in EU steel tube output in 2016-17

Tuesday, 09 February 2016 17:07:59 (GMT+3)   |   Istanbul
       

According to the Economic and Steel Market Outlook 2016-2017/Q1 2016 Report from the Economic Committee of the European Steel Association (EUROFER), EU steel tube output fell by 10.6 percent year on year in the third quarter of 2015, a much sharper drop than expected.
 
The EUROFER report indicated that tube output fell in almost all EU countries, with Germany, France, the UK and Sweden reporting a double-digit reduction . The strongest reduction in output was recorded in France, as several negative structural and cyclical factors influencing demand and supply coincided in the third quarter. Business conditions remained lackluster in the fourth quarter last year, with it estimated that EU tube production fell by around five percent. As a consequence, total tube output is expected to contract by 5.6 percent in 2015.
 
According to EUROFER, the prospects for 2016 and 2017 are moderately positive. The expected general improvement in manufacturing and construction activity in the EU should translate into higher demand levels for small welded and seamless tubes. More specifically, demand for tubular products from the automotive sector will remain robust, whereas the broadening recovery in the construction sector is expected to give a welcome boost to demand for structural tube products.
 
EU production of steel tubes is expected to rise by 2.1 percent in 2016 and by a further 2.9 percent in 2017.

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