The total tube output in the
European Union (EU) in 2011 rose 10.2 percent compared to 2010, but remained almost 20 percent below the pre-crisis level. In the fourth quarter of 2011, total tube output in the EU contracted by two percent compared to the fourth quarter of the previous year, which was in line with the expectations, according to the Economic and Steel Market Outlook 2012-2013/Q2 2012 Report from the Economic Committee of the European Confederation of Iron and Steel Industries (EUROFER).
The EUROFER report states that several factors contributed to the year-on-year trend in tube output turning negative in the final quarter of last year, mainly such as slowed activity in the main user segments of the steel tube market, in line with the general trend in the manufacturing industry.
The outlook for the first quarter of 2012 is for a decline of almost 14 percent year on year. Demand for tube products remained weak in the first months of 2012 due to reduced activity of steel using sectors.
EUROFER predicts that the weak demand to persist until second half of the current year. From the fourth quarter onwards, demand should strengthen again, supported by improving activity in the key client sectors. Tube output is projected to fall by around 4 percent in 2012, while the outlook for 2013
production points to a year-on-year increase of around 2.5 percent, supported by improving market conditions in all tube segments.