According to the Economic and Steel Market Outlook 2013-2014/Q3 2013 Report from the Economic Committee of the European Steel Association (EUROFER), the total steel tube output in the European Union fell almost six percent year on year in the first quarter of 2013. This sharper than expected contraction reflects overall weaker than expected activity levels in the key downstream client sectors of the tube industry in this period.
EUROFER stated that in the rest of the current year small and medium-sized welded tubes and precision tubes will continue to suffer from weak activity levels in major client sectors such as construction, automotive and mechanical engineering industry and metal goods sector. Nevertheless, construction demand for tubes and hollow sections is expected to see at least a moderate improvement compared with very dull demand in the first months of the year.
So far, demand for large diameter steel tubes has remained weak; producers are waiting for the start-up of several large pipeline projects on the European continent. It is rumored that one or two large pipeline projects for the transport of natural gas are now nearing the start-up phase.
According to EUROFER, in 2013 EU steel tube output is expected to decline by almost five percent year on year. For 2014, improving demand from the major tube using industries as well as some restocking in the distribution chain is expected to result in a rise in tube output of almost 2.5 percent.