Page 9 - ITAtube Journal 1 2023

USD/tonne at most. OCTG pipes, having much higher material requirement, are traded at prices of about 3,000 USD/ tonne in the USA. The need to replace the Russian oil and gas supplies let to increased exploration and production
of other oil and gas producing coun- tries, such as the USA. This resulted in increased demand for tubular products. Further opportunities are expected as new pipeline networks need to be built to follow oil and gas logistics as the war in Russia has made some of the existing pipeline system obsolete. Transporting oil and gas by pipelines is by far cheaper and more environmentally friendly than transporting LNG by ship.
Conversion to environmentally friendly production as well as improved infra- structure in terms of pipe mills, fin- ishing lines, digitalisation and applied quality assurance systems also play an important role. Increasing importance is attached to agile management strat- egies in terms of customer benefits, process and product quality improve- ment as well as purchasing processes using “Industry 4.0” measures.
With a view to the return to normality, it can be seen, that plant manufacturers and technology suppliers are increas- ingly finding interesting business oppor- tunities in these new market segments. Some technology suppliers have already reacted and expanded their product portfolio to environmentally friendly and digital solutions.
The International Tube Association has organised several well-attended webi- nars in 2020, 2021 and 2022 to maintain the exchange within our industry. The positive response to these events is a sign of the impressive optimism in our tube industry.
This year, May 11th and 12th 2023, the ITA organizes an international hybrid conference in Düsseldorf under the title “Opportunities for the Tube Industry in turbulent times” offering an excellent platform to discuss sustainable solu-
ITAtube Journal May 2023
tions for the tube and pipe industry. The plant tour on 12th of May to the Benteler Dinslaken plant under the
title “Sustainable Tube Production in a high-cost environment” is an interesting practical example hereto. The confer- ence is a great opportunity to meet and exchange with tube producers as well as technology suppliers of the tube and pipe industry.
The energy cost pressure on our industry is relieving. The price of gas peaked at around 9,8 USD/MMBtu at the end of August 2022, since than the price went down to the pre-Ukraine war levels of about 2.3 USD by April 2023, meaning a price reduction of about 75% (Figure 1). Our European indus- try nowadays depends to a great extent
on imported LNG. Despite significant price reductions since August 2022, the present price of LNG of about 15 USD (Figure 2) is still about 7 times more expensive than natural gas. Therefore, the European energy intensive industry is confronted by a significant cost disadvantage. Similar effect can be reported from the electrical energy price, which in Europe is about 3-times higher than before the Ukraine war. As long as no cheaper energy supply sources become available, this disadvantage remain as a major thread for the European energy intensive steel and tubular industry.
Figure 1: Natural Gas price development 1 year up to 19th of April 2023
(USD/MMBtu) 9 Source: Trading Economics.com
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