Page 10 - ITAtube Journal 2 2024

Market information
gas exploration are politically banned. Therefore, hardly any short- or mid-term measures are visible to overcome cost disadvantages European high energy con- suming industries are confronted with.
The long-term strategy to shift towards green hydrogen to replace fossil energy sources such as natural gas, are also ques-
and pipes accounting for 49,7 million tons and welded tubes and pipes > 406 mm diameter accounting to 22,3 million tons (figure 4).
Tube and Pipe manufacturers buy hot- rolled coils, round billets, or plates as input material for their production lines. 70 % of the total world pipe production,
USD/MMBtu istmiouncehdhbigyhsepr,epcliuasli8st,2s.UHSyDdroorgaebn. 4p0r0o%d,utch-an the ip.eri.ceaboof unotr1m2a0l nmaitluliroanl gtaosn.s/year, are
These remarkatbiolenavdidaiteiolencatlrcolsytsisarien apnpilincdabulsetrtoiasluschalregionsweitlhdoeudt stufbficeisenatnndatpuirpael s. Welded tube
gas supply. Europe is one of such regions with additional cost burdens. Europe is buying
requires not only masses of clean water, producers are highly dependent on attrac- LNG from USA, Kuwait but also from Russia via third countries. Extended European local gas
but also a lot of electrical energy. About 55 tive hot rolled coil prices and large OD (> exploration or shale gas exploration are politically banned. Therefore, hardly any short- or
MW electrical energy per ton of Hydrogen 406 mm diameter) pipeline producers, on mid-term measures are visible to overcome cost disadvantages European high energy
must be considered. Furthermore, the plate prices. Average prices for hot-rolled consuming industries are confronted with.
chemical process, the electrolysis, requires coils came down from September 2021 The long-term strategy to shift towards green hydrogen to replace fossil energy sources such
permanent electrical energy 24 hours (ab. 2000 USD/ton) to September 2023 as natural gas, are also questioned by specialists. Hydrogen production via electrolysis in an
over 7 days per week with limited power (ab. 700 USD/ton). Since then, the HRC industrial scale requires not only masses of clean water, but also a lot of electrical energy.
network variations. The lifetime of the prices strengthened again to prices of About 55 MW electrical energy per ton of Hydrogen must be considered. Furthermore, the
electrolyse stacks is significantly reduced about 1120 USD/ton. End of June 2024 the chemical process, the electrolysis, requires permanent electrical energy 24 hours over 7 days
in case of larger power supply volatility. price is at 730 USD/Ton (Figure 5). Some per week with limited power network variations. The lifetime of the electrolyse stacks is
Therefore, green hydrogen production Countries, such as Turkey and India trade significantly reduced in case of larger power supply volatility. Therefore, green hydrogen
seems to be feasible in regions with steady even at 600 USD/Ton. Furthermore, tube production seems to be feasible in regions with steady sun and wind. In most parts of Europe
sun and wind. In most parts of Europe producers suffer from shortages in the such constant power supply at reasonable cost is still hardly to be realized by the green
such constant power supply at reason- availability of special tube material spec- energy sources wind and sun. Some European countries therefore consider nuclear power as
able cost is still hardly to be realized by ifications. Special alloyed HRC as applied the green solution hereto.
the green energy sources wind and sun. e.g. at OCTG tubes and pipes, are traded
Some European countries therefore con- at significant higher prices. Steel plates are The total world tube and pipe production in 2023 was 167,1 million tons. The largest segment
sider nuclear power as the green solution traded according Kallanish on 26th of June are tubes and pipes with a diameter < 406 mm accounting to 95,1 million tons, followed by
hereto. 2024 for low grade S275 plates at about seamless tubes and pipes accounting for 49,7 million tons and welded tubes and pipes > 406
mm diameter aTchcoeutnottinagl wtoo2r2ld,3tmubilleioanntodnpsip(fieguprreo4d)u. c- tion in 2023 was 167,1 million tons. The
690 USD/ton.
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a diameter < 406 mm accounting to 95,1
FigFiugruere44::World TubbeeaannddPiPpeipPeroPdruocdtiuocnti2o0n232023 SoSuorucrec:e:WiirttschaftsvveerereininigiugnugnSgtaShtlarohhlrroeh, IrTeA, ITA
Billet prices, used for seamless tubes are traded for an average of around 500 USD/ ton.
In 2024 almost all prices for tubular pre-materials were quite volatile. It remains challenging to predict the pre-ma- terial price developments.
Figure 6, shows the price development for two representative tube grades since June 2022:
- P110 OCTG O.D. 5,5” alloyed casing pipe. - S235 non alloyed structural pipe.
The OCTG pipe price for P110, after its hight in October 2022 (ab. 3.900 USD/ton) experienced a price decline of ab. 46% until October 2023 (ab. 2.100 USD/ton) - however, since then, it seems the price has
bottomed out at a level of 1.700 USD/ton.
Tube and Pipe manufacturers buy hot-rolled coils, round billets, or plates as input material for
their production lines. 70 % of the total world pipe production, i.e. about 120 million tons/year,
largest segment are tubes and pipes with
are welded tubes and pipes. Welded tube producers are highly dempeuncdhenlot woneratptraicetivneivheoat u, characterized by
rolled coil prices and large OD (> 406 mm diameter) pipeline producers, on plate prices.
million tons, followed by seamless tubes
much less volatility almost maintained its
Average prices for hot-rolled coils came down from September 2021 (ab. 2000 USD/ton) to
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ITAtube Journal July 2024
The structural pipe S235 although on a