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Figure 14: Regional Steel Tube and Pipe Production > 406 mm (ktons) Source: ITA tube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
The world increasing tube and pipe demand is leading to region- ally improved plant utilization in the steel tube and pipe industry. Some pipe producing companies in the USA even reactivated obso- lete production facilities with a questionable economic future.
Still, despite the remarkable boom in the USA, globalization into
markets with increased demand remains one of the key answers. Middle East and locations with major oil and gas exploration as well as automotive production, mechanical engineering and building construction are to be considered. Besides this, shale gas exploration, deep-sea offshore exploration and oil sand explora-
Market information
Even some of the technologi- cally advanced producers of large diameter line pipes are suffering, despite unique selling points.
In the entire scenario, the cur- rency exchange rates have also a notable impact on the inter- national tube and pipe produc- tion as well as equipment trading throughout the world.
In 2017 the EURO has gained about + 20 % against the US Dollar (Figure 15). Then in 2018 since April 2018 the Euro weakened until October 2018 again by about –10 % to 1.13. This does release pres- sure on exports into the US. Since early 2019 the exchange rate EURO to US Dollar stabilized at a rate of 1.12. It is to be expected how and if the Brexit confusion will take in uence within this year. The election for the European parlia- ment did not really had a remarka- ble impact, since no major changes were imposed.
The Exchange rate EURO to Chinese Yuan was much more vol- atile (+/- 9 %) than the of the EURO to the US$. The US Dollar and the EURO gained about 21 % in 2017. 2018 the EURO lost twice as much against the Yuan (-22 %) compared to the loss against the US Dollar in the same time. The trade con ict between the US and China is creating nervous reactions and it has to be observed to what extent the con ict gets re ected in the relevant exchange rates. In any case it is undoubted, that the exchange rates of these lead currencies do impact the inter- national trade and challenge our industry as well.
What measures are pipe producers and pipe production equipment suppliers taking to conquer the present situation and to generate sustainable business?
Figure 13: World Steel Tube and Pipe Production Welded > 406 mm (ktons) Source: ITA tube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
ITAtube Journal No3/October 2019
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