According to the Economic and Steel Market Outlook 2011-2012/Q4 2011 Report from the Economic Committee of the European Steel Association (EUROFER), the growth rate of tube output in the European Union declined in the second quarter. In the given period, tube output in the EU increased by eight percent, while the growth was over 22 percent in the first quarter, both on year-on-year basis.
EUROFER stated that the forecast for third quarter output growth is around 2.5 percent year on year due to expected growth in tube using sectors. On the other hand, outlook for the fourth quarter points out that output growth will decrease to two percent compared to the same quarter of the previous year.
While demand for small and medium steel tubes is expected to increase mildly, OCTG demand will be supported by higher activity in the Middle East and North America.
EUROFER forecasts total steel tube output in the EU to increase by almost nine percent in 2011 and by 2.5 percent in 2012, year on year.
Meanwhile, in the report issued by Global Industry Analysts (GIA) in early October, thanks to the prosperity of oil & gas and construction sectors and the increase in infrastructure development programs, it is expected that global steel pipe and tube demand will reach 151 million mt in 2017.
According to the GIA report, steady economic growth in the emerging markets of the Asia-Pacific region and Latin America and the subsequent rise in demand from various end-user sectors are also expected to enhance global demand for steel pipes and tubes.