According to the Economic and Steel Market Outlook 2017-2018/Q3 2017 Report from the Economic Committee of the European Steel Association (EUROFER), EU steel tube output grew strongly in the first quarter of this year, rising by 10 percent compared with the same period of 2016.
The EUROFER report indicated that business conditions across the various tube market segments have been favorable since the start of the year. Project activity in the line pipe market has been strong, not only owing to the Nord Stream 2 project but also due to other onshore and offshore projects which involve large volumes of pipe. This increased demand contributed positively to the order book of the EU mills concerned. Improving oil and gas drilling and exploration activity supported demand for OCTG. Demand for small welded tubes has also been satisfactory in recent months. Demand for constructional tubes was supported by the rather strong rise in construction activity in the first quarter.
According to EUROFER, prospects for the tube sector in the remainder of the current year are healthy. Also OCTG demand looks set to remain robust for the time being. In 2018, the tube market is forecast to lose some strength. This will be particularly true for the large welded tube market segment, owing to the order book for pipeline projects currently under construction gradually drying up.
Total EU tube output is expected to increase by 5.3 percent in this year and to fall by 0.4 percent in 2018, both year on year.