According to the Economic and Steel Market Outlook 2012-2013/Q3 2012 Report from the Economic Committee of the European Steel Association (EUROFER), the total tube output in the European Union decreased by four percent year on year in the first quarter.
EUROFER stated that in 2011 the tube industry in the EU had been the steel using sector which registered the most pronounced slowdown in business activity over the year, from a year-on-year increase of 25 percent in the first quarter to a year-on-year decrease of two percent in the fourth quarter of 2011. In addition to weak domestic demand, supply is plentiful due to the slowing demand in several emerging regions.
The outlook for the rest of 2012 does not indicate any short-term recovery in downstream demand conditions. Most tube client sectors in Europe will not see activity improve significantly before the end of this year, according to EUROFER. Meanwhile, the association predicts a 2.5 percent year-on-year increase in the EU's steel tube output in 2013.