According to the Economic and Steel Market Outlook 2022-2023/Q1 2022 Report from the Economic Committee of the European Steel Association (EUROFER), in the third quarter last year output of the EU steel tube industry increased by 8.4 percent year on year, recording an increase in output for the third consecutive month.
According to the EUROFER report, demand for large welded tubes from the oil and gas industry is predicted to continue to improve, due to better prospects for oil and gas demand, also reflected in hikes in energy prices, driven by the economic recovery in some energy-consuming regions. The recent recovery of global oil demand is expected to produce some positive effects on output in 2022, provided that the economic scenario does not deteriorate further. Demand from the construction sector is set to recover. On the contrary, tube demand from the automotive and engineering industries is forecast to remain relatively weaker, even if they restore their production activity to high historical levels and critical supply chain disruptions are ultimately resolved. In addition, import pressure on steel tube markets in the EU will remain high, particularly for the commodity segment.
EUROFER stated that it expects steel tube output in the EU to grow by 2.1 percent in 2022, followed by a 1.5 percent fall in 2023.