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in the pipe price index of about 25%, from 200 to 250. (Fig.12) The positive signals in 2018 also prompted traders to begin cau- tious restocking in expectation of a further price rally.
More significant variations were again displayed by the market segment seamless pipes and tubes (Fig.13). This product segment is quite volatile. In just the two- year period from 2014 to 2016, global production volumes fell by about 10 000 tons (-20%). There was a modest recovery in 2018, when production increased by 4%. However, the severity of the pre- vious decline has meant that the industry has still not managed to reach 2012 production levels.
Growth in 2018 was dominated by volume gains in China (+2%), the US (+17%), India (+32%), ROW (+15%), CIS (+4%) and Japan (+6%). (Fig.14)
What is remarkable is that US administration measures have meant even obsolete seamless tube and pipe mills are now back in operation. However, econo- mists can’t see such outdated plant remaining online for long, since their economic performance remains questionable without major investment.
The production of welded pipes < 406 mm OD (Fig.15) saw a global production volume increase in Q3 2018 (+5%). China, after a series of weak results, was able to report an increase (+6%). It’s the US once more that has the most significant production increase to report (+12%). This tube and pipe dimension range represents by far the largest product segment, with average global growth of about 5 to 10%. Even the down- turn of 2017 (-2%) was nowhere
Fig.10: World steel pipe production in Ttons
Source: ITATube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
Fig.11: World steel pipe production (regional) in Ttons
Source: ITATube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
Fig.12: Producer pipe price index as of December 2018 (December 2003 = 100%) Source: Federal Reserve Economic Data
near as significant as the produc- tion volatility of other tube and pipe dimension segments. It also has the advantage of being able to serve a number of growing markets, allowing producers to capitalize on a broader range of market prospects, as we’ve noted in previous reports.
The production of welded pipes ≥ 406 mm OD is, at about 22 000
tons/year (±5%), by far the small- est product segment. (Fig.16) Its main application is large diame- ter line pipe projects. As we said earlier, such projects often depend on powerful stakeholder interven- tions and the capability of rele- vant pipe producers to qualify for them. The current US government, for example, has recently begun to impose import duties on line
Market information
ITAtube Journal No1/February 2019
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