Page 9 - ITAtube Journal 32022

much higher material requirement, are traded at prices of about 3,000 to 4,000 USD/tonne in the USA.
Further opportunities are expected as new pipeline networks need to be built to follow oil and gas logistics as the war in Russia has made some of the existing pipeline system obsolete. Transporting oil and gas by pipeline is by far cheaper and more environmentally friendly than transporting LNG by ship.
Logistics costs have only recently fallen to normal levels, reducing supply bottle- necks for the steel industry.
Another challenge arises if policies to prevent climate change, such as the additional carbon costs agreed by the European Union, are not introduced in a balanced way. These impacts may also cause industries that consume a lot of energy to move to regions with lower costs. The confidence to compete on the world market with these additional costs in the future is fading for some pipe manufacturers.
Pipe mill infrastructure in terms of pipe mills and finishing lines as well as digi- talisation and applied quality assurance systems also play an important role. Increasing importance is attached to agile management strategies in terms of customer benefits, process and product quality improvement as well as purchasing processes using “Industry 4.0” measures.
With a view to the return to normality, it can be seen that both plant man- ufacturers and technology suppliers are increasingly finding interesting business opportunities in this new market segment. Some technology suppliers have already reacted to this and expanded their product portfolio to include digital solutions.
The International Tube Association has organised several well-attended webi- nars in 2020, 2021 and 2022 to maintain the exchange within our industry. This year, in May 2022, “Engineered Tubes
ITAtube Journal December 2022
for the Automotive Industry” and in November 2022, along with the Tube India 2022 exhibition, a hybrid congress titled “Emerging Technology and Inno- vations in Pipe & Tube Industry” was successfully organised by the ITA Indian Chapter. It was great to meet both tube manufacturers and suppliers to the tube industry at our world’s largest tube trade fair ‘Tube Düsseldorf 2022’ and the regional trade fair ‘Tube India 2022’ in Mumbai. The positive response to these events is a sign of the impressive opti- mism in our tube industry.
The high cost of energy is a major challenge for our industry. The prices for gas (Figure 1) and electrical energy (Figure 2) are causing dark clouds over our steel and tube industry.
Figure 1: Natural Gas price development 1 year up to 30th of November 2022 (USD/MMBtu), Source: Trading Economics.com
Figure 2: Average monthly electricity wholesale prices in selected countries in 9 the European Union (EU) from January 2020 to October 2022
Source: Statista.com
Market information