Page 18 - ITAtube Journal 2 2022

Market information
down by geopolitical circumstances. Asia, and China in particular, although increas- ingly reaching self-sufficiency are still the largest markets for machinery purchases. It remains noteworthy 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 interesting prospects for tube producers.
Most tube and pipe producers were able to report strongly improved economic figures in 2022. However, for European pipe pro- ducers, the persistently higher energy cost and the additional CO¬¬2 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 dwindling among some tube producers. Some tube producers even reduce their engagement in Europe as a consequence hereto.
New upcoming market segments such as carbon capture utilization and storage as well as hydrogen pipelines will start requir- ing larger tonnages of alloyed tubes and pipes in 2025 and thereafter. 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.
Geopolitical turbulences are increasingly taking effect on market developments and consequently strategic planning including risk management becomes more demand- ing.
The transition towards environmentally friendly tube production to produce carbon reduced tubes and pipes became increas- ingly a major task for the industry. Tube and pipe producers are converting their production facilities from gas to electricity. Simultaneously they improve their pro- ductivity, flexibility and customer service. Innovative instruments such as Artificial Intelligence (AI) and Industry 4.0 are intro- duced in this context.
Many technology suppliers have already reacted and enhanced their product port- folio with the addition of environmentally friendly and digital solutions.
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ITAtube Journal December 2023
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