According to the Economic and Steel Market Outlook 2018-2019/Q1 2018 Report from the Economic Committee of the European Steel Association (EUROFER), EU steel tube production grew by 8.4 percent year on year in the third quarter of 2017. Output growth was particularly vigorous in Germany and Spain.
The EUROFER report indicated that a key factor contributing to the continued healthy performance of the EU’s steel tube sector is robust project activity in the international pipeline market and the related order backlog at the EU’s main large welded tube producers. Another factor has been the improvement in business conditions in the downstream client sectors of small and medium-sized welded tubes, such as the construction, mechanical engineering, automotive and other transport equipment and metal goods industry.
With favorable business conditions expected to have continued in the fourth quarter of 2017, production activity in the EU steel tube sector is estimated to have increased by another 5.2 percent year on year in this period. On balance, total EU tube output is expected to have risen by 8.3 percent in the full year of 2017, resulting in the best total annual production volume of steel tubes in the EU since 2012.
Meanwhile, in the current year, steel tube production in the EU is forecast to decline moderately as order books for pipeline construction projects at EU-based large welded tube mills dry up. As a consequence, the boost from this market is expected to disappear in 2018 and 2019. Meanwhile, demand for small welded tubes is forecast to continue to increase, supported by the overall positive business situation in the main downstream client industries.
According to EUROFER, total EU steel tube output is expected to contract by 0.5 percent in 2018, followed by a 0.7 percent increase in production activity in 2019.