Page 11 - ITAtube Journal 3 2024

Market information
Figure 6:  World Tube and Pipe Production 2024 first 6 Months for selected Territories
Source: Wirtschaftsvereinigung Stahlrohre, ITA
In China the entire steel industry was
already suffering from production cuts in
2023 whereas the tube and pipe produc-
tion was experiencing record high figures.
Now in 2024 first 6 months also the tube
and pipe industry was hit by production
cuts of -8%. Consequently, Chinese pro-
ducers seek for new additional markets to
compensate such market losses. Remark-
able is the cut in pipeline tubes >16” with
– 14%. This may be caused by delays for
scheduled pipeline projects still to come.
The USA, being a very price sensitive
market, after steady growth in the past
years reacted immediately on the smaller
demand for OCTG products wit production
cuts of -12%. Particularly the production of
pipeline pipes > 16” with -17% is striking.
Here the incoming president Trump has
already announced to revive some of the
pipeline projects which were suspended
under President Biden.
Europe´s tube production kept relatively
stable with -1%. In fact, the production of
seamless tubes following the closure of
Vallourec’s European plants appears to
have more than compensated for their
production with only 500,000 tonnes less.
Just the production of pipes > 16” was suf-
fering with production cuts of minus 10%
caused by delayed projects.
CIS suffering also from production cuts
of -11%. Just the pipeline pipes >16” were
boosting their production (+9%) due to
pipeline projects to redirect the Russian
Oil and Gas resources.
Tube and Pipe manufacturers buy hot-
rolled coils, round billets, or plates as input
material for their production lines. 72 % of
the total world pipe production, i.e. in 2024
about 116 million tons/year, are welded
tubes and pipes. Welded tube producers
are therefore highly dependent on attrac-
tive hot rolled coil prices and large OD (>
406 mm diameter) pipeline producers, on
plate prices. Average prices for hot-rolled
coils in the US came down from January
2024 (ab. 1130 USD/ton) to December 2024
(ab. 690 USD/ton) (Figure 7). Some Coun-
tries, such as Turkey (600 USD/ton) or
India (540 USD/ton) trade even lower.
Figure 7:  Hot-Rolled Coil Steel prices 1 Year until 6th December 2024
Source: tradingeconomics.com
Furthermore, tube producers suffer from
shortages in the availability of special tube
material specifications. Special alloyed
HRC as applied e.g. at OCTG tubes and
pipes, are traded at significant higher
prices. Low grade Steel plates (S275) are
traded according Kallanish on 2nd of
December 2024 for at about 650 USD/ton
and S355 at about 690 USD/ton.
ITAtube Journal December 2024 11