Page 16 - ITAtube Journal 3 2024

Market information
energy-efficient designs, the industry will
experience positive growth. In addition,
factors such as rising per capita incomes in
emerging markets and now lower interest
rates in developed markets are expected
to support the expansion of the construc-
tion market.
The penetration of structural tubes in the
building and construction market has been
uneven throughout the world. In North
America and parts of Asia, pipe products
are widely used in building construction.
In Europe, on the other hand, standard
concrete or open steel structures are
still dominantly used. The tube industry
must continue to promote the benefits of
tubular applications and demonstrate the
architectural prospects. Tubular profiles
are an ideal choice when visible structures
are desired due to their versatile shapes
and closed cross-sections combined with
smooth sides. The best mechanical prop-
erties and the ability to bridge large spans
are further highlights of tubular profiles.
In addition to round structural tubes, rec-
tangular profiles dominate in architecture
(Figure 17).
Figure 17: Structural Design by Tubular Products
Source: Zeckelmann
Such profiles are usually cold-rolled and
formed in so-called “Turk’s heads”. In this
process, attention must be paid to the
metallurgical properties of the edges. Gen-
erally, unalloyed steel is used, but alloyed
steels with their improved material prop-
erties should also be considered. In terms
of carbon footprint, pipe profiles are of
great advantage as the steel used can be
produced from metal scab in electric arc
furnaces powered by green electricity.
There is room for additional production
capacity for structural tubes, particularly in
India, to keep up with the market trend.
The majority of pipe manufacturers were
able to report significantly improved eco-
nomic figures in 2023. However, declining
demand from 2023 onwards, persistently
higher energy costs in some regions and
the additional CO2 levies adopted by
the European Community pose major
challenges for pipe producers, especially
those based in Europe. Some pipe produc-
ers are losing confidence in their ability
to compete on the global market in the
future with these additional costs. As a
result, some pipe producers are even
reducing their involvement in Europe.
Continued demand for oil and gas, new
cars, machinery and building construction,
particularly in GDP growth areas, as well
as new emerging market segments such
as carbon capture and storage and hydro-
gen pipelines, will maintain demand for
tube products and require larger volumes
of alloyed tubes from 2025 onwards. In
general, there is sufficient production
capacity to meet the growing demand for
tubes in all market segments. However,
the trend towards manufacturing close to
customers will continue to influence the
landscape for tube producers. Raw mate-
rial prices for the steel and tube industry
appear to have stabilised. However, the
markets are nervous and there is potential
for further volatility.
A further challenge could arise if political
measures to prevent climate change are
not introduced in a balanced manner,
which could lead to the relocation of
16 ITAtube Journal December 2024