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Fig. 14: Currency exchange rates vs euro as per June 27, 2018 Source: Finance.net
value against the US$ at around 1.07. Throughout 2017 until Feb- ruary 2018, the euro strengthened against the US$ by about 17 % to 1.25. Since then it has dropped again by about 7 %, which has helped to lessen the pressure on exports into the US.
In 2017, the exchange rate of the euro to the Chinese yuan also improved, by about 7 %. In early 2018, it fell again by about 5 % - thus helping to balance out the export advantages enjoyed by China.
The value of the Russian rouble remained relatively stable in the latter half of 2017 at a level of about 70 roubles/euro. This meant that local pipe producers
to a large extent served the home market, to compensate for export losses. So far in 2018, the rouble has strengthened by about 8 % against the euro (Fig. 14).
From January 2017 (4.0) to Febru- ary 2018 (4.7), the exchange rate of the euro to the Saudi Arabian riyal (SAR) gained about 18 %. This meant that imports from Saudi Arabia to Europe became signi cantly less expensive, although since then the riyal has dropped again by some 6.5 %.
As indicated by these latest gures, US tube and pipe pro- ducers in particular have greatly pro ted from the political climate created by the US government and the resultant business trends on
Market information
The most signi cant variations were seen in the market segment seamless pipes and tubes (Fig. 10). Global production volumes increased by 8 % in 2017, dom- inated by the US (+74 %), other territories/ROW (+49 %), India (+27 %), EU (+21 %), and CIS (+15 %). China with the largest produc- tion volume did not increase its market share.
The production of welded pipes < 406 mm OD saw a slight global pro- duction volume decrease in 2017 (-2 %). China once again reported the most signi cant decrease (-10 %). All other regions reported an upturn in production volume: US (+ 34 %), CIS (+10 %), India (+7 %) and Europe (+4 %) (Fig.11).
The gures for welded pipes ≥ 406 mm OD, large diameter line pipe, also show an overall pro- duction decrease of 7 % in 2017, most marked in the US (-7 %) – although new US import tariffs on line pipe imports have had their desired effect and have slowed the downturn on home markets. The negative trend re ects the decreased demand for pipelines in these regions. The pipeline market is dominated by large pro- jects, which are mostly politically driven. Europe, on the other hand, increased production (+47 %) and has further strengthened its position as a technologically advanced producer of large diame- ter line pipe (Fig. 12).
In the entire scenario, currency exchange rates have also had a signi cant impact on pipe exports and pipe manufacturing machin- ery exports throughout the world.
From the second half of 2014, the euro lost about 20 % against the US Dollar (US$) (Fig. 13). Then, in 2016, it managed to hold its
Fig. 13: Currency exchange rates vs euro as per June 27, 2018 Source: Finance.net
ITAtube Journal No2/July 2018
EUR/US$ Chart – 3 Years EURO/YUAN Chart – 3 Years
EUR/ROUBLE Chart – 3 Years EURO/SAR Chart – 3 Years
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