According to the Economic and Steel Market Outlook 2023-2024/Q4 2023 Report from the Economic Committee of the European Steel Association (EUROFER), in the second quarter this year output of the EU steel tube industry decreased by 9.5 percent year on year, after a 3.5 percent fall in the previous quarter, indicating a fourth consecutive contraction. The decline was due to war-related disruptions and the energy crisis.
According to the EUROFER report, demand for large welded tubes from the oil and gas sector is not expected to improve substantially in the longer term as the EU has accelerated its transition towards LNG shipping of oil and gas for its energy needs, thereby reducing its reliance on gas transported via pipelines. On the one hand, global oil demand is not expected to support the launch or the implementation of new pipelines in the short term due to high geopolitical uncertainty and the poor global economic outlook. On the other hand, demand from the construction sector is also set to ease, while tube demand from the automotive and engineering sectors is forecast to remain relatively stronger.
EUROFER stated that production in the EU steel tube sector is expected to decrease by 4.4 percent in 2023, sharper than the previous expectation for a fall of 2.4 percent. As for 2024, the output is expected to recover by 1.1 percent year on year.