Pipe production in the EU falls for the sixth consecutive quarter – EUROFER

Weak recovery in 2025-2026 will not compensate for losses due to the energy crisis and low investment

In Q2 2025, steel pipe production in the EU declined for the sixth consecutive quarter, falling 2.0% y/y after a 2.9% y/y decline in January-March. Despite the slowdown in the rate of decline, the industry remains in a state of prolonged turbulence that has continued since the second half of 2022. This is stated in the report of the European Steel Association EUROFER Economic and steel market outlook 2025-2026, IV quarter.

After the post-pandemic recovery, the positive momentum was interrupted by the war against Ukraine, supply chain disruptions, and a sharp energy shock, the effects of which the market is still feeling.

Uncertainty about the cost of energy resources remains a key restraining factor. Despite the gradual decline in gas and oil prices amid subdued global economic growth, investment activity in the sector remains weak. This has the most significant impact on trunk pipeline projects within the EU, the launch or expansion of which is being postponed.

The outlook for the coming years remains subdued. EUROFER expects that in 2025, steel pipe production in the EU may grow by only 0.5% y/y, and in 2026 by another 0.7% y/y. This trend indicates an extremely slow recovery after several years of decline and a lack of strong growth drivers in the medium term.

The long-term outlook for the large welded pipe segment for the oil and gas industry remains subdued. The European Union’s transition to more active use of LNG logistics reduces the need for new pipeline projects. Demand from the construction sector is also expected to weaken, while the automotive and engineering industries will maintain relatively stable demand and partially support production capacity utilization.

According to EUROFER forecasts, apparent steel consumption in the EU will begin to recover in 2026, increasing by 3%. This will happen provided that industrial conditions improve and global tensions ease, but these factors remain difficult to predict at this time. At the same time, in 2025, the indicator will decline for the fourth consecutive year.