Page 11 - ITAtube Journal 2 2024

higher prices. Steel plates are traded according Kallanish on 26th of June 2024 U
S
o -
b i
w s
s to Europe. USA (+19%) with strong growth in all dimensional segments driven b
price level at ab. 630 USD/ton. Comparing the price difference between HRC and finished structural tubes and pipes type
S 235 (Figure 6), it becomes obvious how small the margins for tube producers of such products are. There were even time periods, with negative margins.
As already shown in the last edition, the world tube and pipe production after a slight downturn in 2022 of -1%, had an impressive recovery in 2023 of +14%.
Anyhow substantial regional differences are reported. CIS (+17%), the strong growth most likely due to compensation of imported pipes by local production. Remarkable is that contrary to the trend, the production of welded tubes < 406 mm OD was suffering by
– 38%, whereas the segment of pipeline pipes > 406 mm OD was growing by 67%. This trend seems to be fired by the need to build new pipelines to redirect the gas originally send to Europe. USA (+19%) with strong growth in all dimensional segments driven by the strong economic situation and the strong oil and gas demand. China representing more than 50% of the world tube production had a further gain of 15%, which is by far more than the overall economic growth in China. Particularly
the seamless tube segment reported a remarkable increase of +23%. India after
a week 1st half year 2023 reported a booming 2nd half year ending up at a full year 2023 increase of +12%. This positive development was already reported in our last report and was covering all tube and pipe segments. In essence the tube and pipe producers in these four countries
are benefitting the most from the present geopolitical turbulences. Japan and Europe on the other hand are suffering and do not participate in the general growth trend reported for 2023 in the range of +14%!
Whereas the welded tube production segment < 406 mm OD is charged by hot rolled coils mainly processed on contin- uous ERW lines, the segment of welded pipes > 406 mm OD is represented by more alternative production routs. Up
to a max. of 710 mm OD and a max wall thickness of ab. 25 mm, the ERW process
Figure 5: Hot-Rolled Coil Steel prices 5 Year until 19th July 2024 FiSgouurrece5::trHaodtin-RgeoclolendomCiocsil.cSotmeel prices 5 Year until 19th July 2024 Source: tradingeconomics.com
S275 plates at about 690 USD/ton.
Billet prices, used for seamless tubes are traded for an average of around 500
Market information
In 2024 almost all prices for tubular pre-materials were quite volatile. It remains to predict the pre-material price developments.
ITAtube Journal July 2024
– 38%, whereas the segment of pipeline pipes > 406 mm OD was growing by 6
Figure 6: Representative Steel Tube and Pipe Prices (OCTG –
Figure 6: Representative Steel Tube and Pipe Prices (OCTG – P110 USA and
P110 USA and Structural S235 Turkey)
S235 Turkey)
5
Figure 6, shows the price development for two representative tube grades since
- P110 OCTG O.D. 5,5” alloyed casing pipe.
- S235 non alloyed structural pipe.
ThiseaOpCplTieGdpdipeepepnricdeinfgoroPn1t1h0e, afvtaeirlaitbsihliitgyht in October 2022 (ab. 3.900 USD/t
exopfeardieenqcueadtae phroictestdreipclidniemoefnasbi.o4n6s%. Tuhnetil October 2023 (ab. 2.100 USD/ton)
Source: Kallanish.com
Source: Kallanish.com
since then, it seems the price has bottomed out at a level of 1.700 USD/ton.
discontinuous LSAW process charged by
The structural pipe S235 although on a much lower price niveau, characterized
plates is producing up to ab. 1.524 mm
volatility almost maintained its price level at ab. 630 USD/ton. Comparing the pr
OD and wall thicknesses up to ab. 65 mm
between HRC and finished structural tubes and pipes type S 235 (Figure 6), it b
in standard length of 6-12 m (18 m). The
obvious how small the margins for tube producers of such products are. There
LSAW process is limited by the geomet-
time periods, with negative margins.
rical availability of plates in the required
As already shown in the last edition, the world tube and pipe production after a
width and length range. The applied
downturn in 2022 of -1%, had an impressive recovery in 2023 of +14%.
technologies with different capacities are:
Anyhow substantial regional differences are reported. CIS (+17%), the strong gr
U-ing and O-ing presses, 3-roll bending or
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likely due to compensation of imported pipes by local production. Remarkable i to the trend, the production of welded tubes < 406 mm OD was suffering by
trend seems to be fired by the need to build new pipelines to redirect the gas ori