According to the Economic and Steel Market Outlook 2016-2017/Q2 2016 Report from the Economic Committee of the European Steel Association (EUROFER), EU steel tube output contracted by 6.7 percent year on year in the fourth quarter of 2015, a less sharp reduction compared to the previous quarter. The EU’s total tube output in 2015 fell by 6.1 percent year on year, with a majority of the reporting EU countries registering a decline in output.
The EUROFER report indicated that in the fourth quarter the steel tube industry in Germany, France, the UK, Spain and Sweden suffered a double-digit decline in activity. The factor dragging down tube output in the EU was lower investment in the oil and gas sector due to the sharp decline in oil prices over the past two years. This affected both line pipe demand as well as demand for oil country tubular goods.
According to EUROFER, the outlook for 2016 and 2017 is moderately positive. Output in most EU countries is expected to return to growth over this period. Domestic demand for small welded and seamless tubes is expected to improve, supported by the continuing recovery of the EU economy and expanding production in the key user segments of these types of tubes such as the automotive industry, construction, metal goods, offshore wind applications and mechanical engineering.
EU production of steel tubes is expected to rise by two percent in 2016 and by a further 3.1 percent in 2017.