EUROFER: Tube output in EU expected to drop in 2024

The positive trend in the tube section after the pandemic was disrupted by the war in Ukraine and supply chain issues in the second half of 2022. The energy crisis also had a tremendous effect on the sector, including pipeline projects in the region.

In the full year, tube output in the EU dropped by 1.6 percent year on year, compared to the 2.4 percent decrease in the previous guidance.

According to the EUROFER report, demand for large welded tubes from the oil and gas sector is not expected to improve significantly natural gas (LNG) shipping for its energy needs, thereby reducing its reliance on gas transported via pipelines. On the one hand global oil demand ist not expected to support the launch or the implementation of new pipelines in the short term due to high geopolitical uncertainty and the poor global economic outlook. The EU's oil demand is expected to drop also in 2024. On the other hand, demand from the construction sector is also set to decrease and contribute modestly to growth in output, while tube demand from the automotive and engineering sectors is expected to remain relatively stronger.

EUROFER stated that production in the EU steel tube sector is expected to decrease by 0.5 percent in 2024. As for 2025, tube output is forecast to grow by 0.8 percent year on year.