Production is expected to recover by 1.3% this year and 0.5% – in 2025, after a 2.4% drop in 2023
Steel pipe production in the European Union will grow moderately in 2024-2025 after falling in 2023. In particular, production in the industry is expected to grow by 1.3% y/y this year and by 0.5% y/y – in 2025. At the same time, in 2023, according to EUROFER forecasts, EU pipe companies will reduce production by 2.4% y/y, according to the association’s report Economic and steel market outlook 2024-2025, first quarter.
In the third quarter of 2023, steel pipe production in the EU increased by 1.3% y/y after a 4.5% y/y decline in the previous quarter.
«The positive trend in the pipe sector following the COVID-19 pandemic was disrupted by the war in Ukraine and supply chain issues in the second half of 2022. The energy crisis also had a significant impact on the sector,» the report said.
According to the association’s forecasts, demand for large welded pipes for the oil and gas industry will not recover in the long term, as the EU has accelerated its transition to the transportation of liquefied natural gas for energy needs, thereby reducing dependence on pipeline gas. At the same time, the weakening global oil demand is not expected to stimulate the launch or implementation of new pipelines in the short term amid high geopolitical uncertainty and poor economic prospects.
Demand for pipes from the construction sector is also expected to decline, while the automotive and machine building sectors will remain the main drivers of EU pipe production growth.
As GMK Center reported earlier, according to EUROFER forecasts, apparent steel consumption in the European Union is expected to decline by 6.3% in 2023 compared to 2022, to 129 million tons. At the same time, in 2022, the figure decreased by 6.5% y/y, and in 2024 it is expected to grow by 5.6% y/y.