Tube output in EU to rise four percent in 2010

Total tube output in EU may rise by approximately four percent in 2010. For 2011 a fairly similar growth in output is expected, according to the Economic and Steel Market Outlook 2010-2011/Q2 2010 Report from EUROFER's Economic Committee, released by the European Confederation of Iron and Steel Industries (EUROFER).
 
The EUROFER report states that for 2010 it is expected that from the first quarter onwards the tube sector will see a moderate recovery which should gradually gain strength over the year. With the exception of the construction sector, almost all end-user sectors of seamless and small and medium-size welded steel tubes will experience a mild rebound in activity
from the low levels reached in 2009. Equally important is the fact that steel tube inventories in the distribution chain and at the end-user level have been reduced to levels which probably will require replenishment on a relatively short term, depending on the actual speed of recovery in industrial activity.
 
Also, prospects for the OCTG market and large welded tube demand have improved over the past few months. Since March this year, the Brent crude oil price is holding steady at around $80 per barrel. The rebound in the global economy gaining strength will lead to further upward pressure on oil prices; analysts currently expect them to reach $85-95 per barrel in the course of 2010. This will have a positive impact on global drilling and exploration activity and suggests that oil companies may restart some previously mothballed pipeline projects.