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Market information
changer for the worldwide mechanical engineering industry. The USA and Europe continue to be significant sales regions
as well. It remains noteworthy that the Chinese industry has taken the global lead in machinery sales since the Corona crisis. This market segment certainly has the greatest variety of tube products. Cylinder-, ball bearing- and turned part tubes, to name just a few prominent representatives of this market segment, certainly show good prospects for tube producers.
Most pipe and steel producers were able to report strongly improved economic figures for Q1 and Q2 in 2022 in the wake of the price increases. However, for European pipe producers, the additional CO¬¬2 costs agreed to be imposed by the European Community represent a major challenge. Confidence in being able to compete on the world market in the future with these additional costs is dwindling among some tube producers.
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 by the end of 2021.
Energy costs, however, remain high and climb even further since market interven- tions (e.g. OPEC plus) and warlike actions call free world trade into question. Further challenge may be imposed, if political 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 can be restored, price volatility can be expected to calm down. How long will it take, to realize the inflation target of 2% again? Tube plant infrastruc- ture with respect to tube mills and finishing lines as well as applied quality assurance systems also plays a significant role. Tube and pipe producers who have used the corona pandemic to improve their produc- tivity, flexibility and customer service, like introducing “Industry 4.0” measures, will benefit from such measures.
With an eye to the return to something
like normal, it should be noted that plant builders and technology suppliers alike may find interesting business opportunities in this new market segment. Some technol- ogy suppliers have already reacted and enhanced their product portfolio with the addition of digital solutions.
It is good to realize, that besides the virtual exchange in our industry, such as the webi- nars organized by the International Tube Association (ITA) now again hybrid or even personal events for industrial exchange take place. The recent conference alongside Tube India 2022 this November under the headline ” Emerging Technology and Inno- vations in Pipe Tube Industry” was an excel- lent example hereto. It was great to meet tube producers as well as suppliers to the tube and pipe industry at our world largest tube and pipe show “Tube Düsseldorf 2022” and the regional show “Tube India 2022” in Mumbai.
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ITAtube Journal December 2022