EU’ssteel tube industry faced a tumultuous period in the first quarter of 2023, as output contracted for the third consecutive quarter (-3.5%, after -0.9%). The sector's positive trajectory, which had persisted for six consecutive quarters, was abruptly halted by the disruptive forces of war-related disruptions and supply chain issues that emerged in the latter half of 2022, reveals EUROFER’s latest reportLooking ahead, the forecast for the EU steel tube sector presents a mixed picture. Following a rebound in 2021 (+10.9%) and moderate growth in 2022 (+1.9%), the industry is now expected to encounter a sharper-than-expected downturn in 2023 (-2.4%, revised downwards from +1.8%). However, there is hope for a modest recovery in output (+1.4%) in 2024.The ravaging impact of the pandemic in 2020 had profoundly affected the EU steel tube industry, much like other steel-utilizing sectors. Though 2021 brought some relief, the persistent global supply chain issues and the disruptive effects of Russia's war in Ukraine in 2022 took their toll, causing a setback in ongoing projects and constraining material availability. This challenging landscape has especially hindered demand for large welded tubes from the oil and gas sector, given the EU's accelerated shift towards LNG shipping for energy needs, reducing reliance on gas pipelines.Uncertainty clouds the short-term prospects for the oil and gas industry, leading to a lack of impetus for new pipeline launches and implementations. Additionally, a gloomy global economic outlook further dampens the outlook for oil demand, foreseen to ease throughout 2023 and into 2024, even within the EU. On the other hand, demand from the construction sector is also set to soften, making only a modest contribution to growth in output. Nevertheless, there is a glimmer of hope as tube demand from the automotive and engineering sectors is expected to remain relatively robust.As the steel tube industry navigates through these challenging waters, strategic resilience and adaptability will be pivotal. The sector must explore avenues for diversification and capitalize on opportunities in the automotive and engineering domains. Moreover, a keen eye on emerging energy trends and sustainable infrastructure projects could open up new vistas for growth and ensure a more stable future for this vital industry.
EU’ssteel tube industry faced a tumultuous period in the first quarter of 2023, as output contracted for the third consecutive quarter (-3.5%, after -0.9%). The sector's positive trajectory, which had persisted for six consecutive quarters, was abruptly halted by the disruptive forces of war-related disruptions and supply chain issues that emerged in the latter half of 2022, reveals EUROFER’s latest reportLooking ahead, the forecast for the EU steel tube sector presents a mixed picture. Following a rebound in 2021 (+10.9%) and moderate growth in 2022 (+1.9%), the industry is now expected to encounter a sharper-than-expected downturn in 2023 (-2.4%, revised downwards from +1.8%). However, there is hope for a modest recovery in output (+1.4%) in 2024.The ravaging impact of the pandemic in 2020 had profoundly affected the EU steel tube industry, much like other steel-utilizing sectors. Though 2021 brought some relief, the persistent global supply chain issues and the disruptive effects of Russia's war in Ukraine in 2022 took their toll, causing a setback in ongoing projects and constraining material availability. This challenging landscape has especially hindered demand for large welded tubes from the oil and gas sector, given the EU's accelerated shift towards LNG shipping for energy needs, reducing reliance on gas pipelines.Uncertainty clouds the short-term prospects for the oil and gas industry, leading to a lack of impetus for new pipeline launches and implementations. Additionally, a gloomy global economic outlook further dampens the outlook for oil demand, foreseen to ease throughout 2023 and into 2024, even within the EU. On the other hand, demand from the construction sector is also set to soften, making only a modest contribution to growth in output. Nevertheless, there is a glimmer of hope as tube demand from the automotive and engineering sectors is expected to remain relatively robust.As the steel tube industry navigates through these challenging waters, strategic resilience and adaptability will be pivotal. The sector must explore avenues for diversification and capitalize on opportunities in the automotive and engineering domains. Moreover, a keen eye on emerging energy trends and sustainable infrastructure projects could open up new vistas for growth and ensure a more stable future for this vital industry.
