Page 16 - ITAtube Journal 1 2023

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Market information
The greatest potential for the use of tubular products (Figure 20) is seen in vehicle frames, followed by chassis and power- trains. Tube manufacturers shall endeav- our to enter new vehicle series with larger volumes to further expand their presence in the light vehicle industry.
Overall, the automotive industry is chal- lenged by the transition towards electro- mobility and how to keep on serving such markets where electromobility cannot be introduced due to restrictions regarding availability of electrical energy. Therefore, automotive producers will need to follow all drive technologies to prevent losing large market potentials. Environmentally friendly combustion technologies will still have its position. Political institutions such as in Europe on the other hand, set time limits to ban combustion technologies. In this field
for machinery purchases. It remains note- worthy that the Chinese industry has taken the global lead in machinery sales since the Corona crisis.
Here, the decoupling intentions of the USA must be observed since this may become a game changer for the worldwide mechan- ical engineering industry. The USA and Europe continue to be significant sales regions as well. This market segment cer- tainly has the greatest variety of tube prod- ucts. Cylinder-, ball bearing- and turned part tubes, to name just a few prominent representatives of this market segment, certainly show good prospects for tube producers.
Most pipe and steel producers were able to report strongly improved economic figures in 2022 in the wake of the price increases. However, for European pipe producers,
the persistently higher energy cost and the additional CO2 levies agreed to be imposed by the European Community represent major challenges. Confidence in being able to compete on the world market in the future with these additional costs is dwin- dling among some tube producers. Some tube producers even reduce their engage- ment in Europe as a consequence hereto.
In general, there is enough production capacity to serve even the increased demand for tubes and pipes for all market segments. Raw material prices for the steel as well as the tube and pipe industry would seem to have peaked early 2023. Still markets are nervous with potential for further volatility.
Further challenge may be imposed, if polit- ical measures to prevent climate change are not introduced in a balanced way, with possible consequences being the migration of high energy consuming industries to low- er-cost regions. Nonetheless, if the balance of supply and demand within the tubes and pipes industry is restored, price volatility can be expected to calm down.
Tube plant infrastructure with respect to tube mills and finishing lines as well as applied quality assurance systems also
ITAtube Journal May 2023
Figure 21: The Global Market for Mechanical Engineering continues to grow Source: VDMA, IKB Research
of tension, the automotive industry includ- ing its suppliers of tubular products need to find appropriate business approaches.
The mechanical engineering market segment, which accounts for around 9%
of world pipe production, has developed well in line with global GDP in recent
years (Figure 21). During the financial- and corona crisis, the market was characterised by higher volatility with sharper declines and quick recoveries. In 2022, the current further recovery was slowed down by geo- political circumstances. Asia, and China in particular, although increasingly reaching self-sufficiency are still the largest markets