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Fig. 3: World car production by region 2014-17
Source: German Association of Automotive Industry (VDA), June 27, 2018.
Fig. 4: Global steel tube production by region, 2017
Source: ITAtube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
Market information
tinued to climb steeply, achieving 332 in June 2018. Competition in saturated markets is prompting minor investments in those tube markets that display growth. More demanding high-tech products are the strategic targets, rather than commodity-grade tubes.
Tube suppliers located in high- cost countries are successfully taking steps to counter the strong international competition. As well as seeking to specialize in prod- ucts with higher technical require- ments, they are globalizing into markets with increased demand and streamlining their productiv- ity to reduce production costs.
Finally, we also discuss the impact of currency exchange rates on the pipe market. Exports from the euro zone were favored in 2016, but the euro strengthened consid- erably throughout 2017 and into early 2018, which led to export disadvantages. Currently the Euro- pean currency is falling again, improving export markets for eurozone products vis-a-vis other important currencies.
Looking at the main market seg- ments for steel pipe suppliers, this market is dominated by the OCTG industry (51 %). Besides this, the automotive (15 %), mechanical (9 %) and construction industries (5 %) are also strong market seg- ments for the sector (Fig. 1).
The automotive and construction markets in particular are char- acterized by stability and high demand.
World car production levels grew overall by about 1% in 2017 (Fig. 2). Regionally, growth rates dif- fered considerably, with growth in Europe (+3 %), Asia (+3 %, dom- inated by China at +7.4 %) and particularly the Mercosur market
Fig. 2: World car production 2014-17
Source: German Association of Automotive Industry (VDA), June 27, 2018.
ITAtube Journal No2/July 2018
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