European Steel Association EUROFER in latest Economic & Steel Market Outlook said that the European tube sector rebounded by 11% YoY, after the severe drop of 13% experienced in 2020 due to the COVID-19 pandemic. EUROFER said “During 2020 output in the EU steel tube industry was heavily impacted by the industrial stoppages due to the COVID-19 outbreak. Likewise for other steel-using sectors, the rebound seen over the first three quarters of 2021 eased somewhat in the fourth quarter as a result of severe global supply chain issues. The expected disruptions linked to the war in Ukraine have further delayed ongoing projects and impacted the availability of materials. In the longer-term, demand for large welded tubes from the oil and gas sector should not improve substantially, due to the effects of war sanctions and consequent disruptions in oil and gas supply chain.”EUROFER added “The recent recovery of global oil demand including oil prices, although not yet at levels comparable to other commodities like natural gas, is not expected to boost the launch or the implementation of new pipelines in the short-term. On the other hand, demand from the construction sector is set to recover a bit more robustly, whereas tube demand from the automotive and engineering sectors is forecast to remain relatively weaker. In addition, import pressure on steel tube markets in the EU will remain high, particularly for the commodity segment.”
European Steel Association EUROFER in latest Economic & Steel Market Outlook said that the European tube sector rebounded by 11% YoY, after the severe drop of 13% experienced in 2020 due to the COVID-19 pandemic. EUROFER said “During 2020 output in the EU steel tube industry was heavily impacted by the industrial stoppages due to the COVID-19 outbreak. Likewise for other steel-using sectors, the rebound seen over the first three quarters of 2021 eased somewhat in the fourth quarter as a result of severe global supply chain issues. The expected disruptions linked to the war in Ukraine have further delayed ongoing projects and impacted the availability of materials. In the longer-term, demand for large welded tubes from the oil and gas sector should not improve substantially, due to the effects of war sanctions and consequent disruptions in oil and gas supply chain.”EUROFER added “The recent recovery of global oil demand including oil prices, although not yet at levels comparable to other commodities like natural gas, is not expected to boost the launch or the implementation of new pipelines in the short-term. On the other hand, demand from the construction sector is set to recover a bit more robustly, whereas tube demand from the automotive and engineering sectors is forecast to remain relatively weaker. In addition, import pressure on steel tube markets in the EU will remain high, particularly for the commodity segment.”
