Page 3 - ITATUBE Journal 1 2020

Dear readers,
ladies and gentlemen,
It’s already half over, and already we can say that 2020 has been a strange old year.
Since the turn of the year, global oil demand, already strained at the seams, has been sorely tested by the COVID-19 virus. Brent crude prices fell by 30% in a single day, the price per barrel dropping below $34 in early March.
And the oil price war between Saudi Arabia and Russia continues apace. Faced with lower demand due to COVID-19, Russia refused to cut back production. In response, Saudi Arabia forced OPEC’s hand, increasing production and lowering prices still further. An energy price war and the negative impact on oil prices doesn’t encourage new exploration and will push down demand for oil country tubular goods, line pipe, and other ener- gy-related steel products.
Nonetheless, in China, even though millions were quarantined to halt infection, the mills contin- ued to produce steel, so much so that global markets now have to deal with a sizeable surplus. China needs to export this excess pro- duction whatever the cost, posing a threat to global steel prices for some time to come.
Growing trade tensions stemming from the pre-COVID era and the resultant effects on oil prices and steel markets are familiar prob- lems. However, combined with the massive supply chain disruptions of the past few months and fun- damental changes on the factory
floor and in offices across the globe, the metal and metal-work- ing industries—including the pipe and tube sectors—are faced with a need for agility and adaptability on a scale that’s entirely new.
Broadly speaking, we must now fast forward Industry 4.0 with an urgent need for greater connectiv- ity of machines, data, value chains, and, most importantly, people. When factories in many parts of the world reopen and the machines return to full production, it will be seen that COVID-19 has changed the manufacturing ecosystem for the long term.
The world has transformed more in the last three months than it has for decades – and with it, so must the manufacturing workforce. New skillsets are required, innovation and technological progress will be central to recovery. In this sit- uation, an organization like ours, the ITA, is precisely the forum for exchange—of ideas, of cut- ting-edge technology, of training and education opportunities.
All the more reason to use the tools we have at our disposal to continue our interrupted conver- sations; we intend to take stock at our upcoming web conference series of where we all are as we return—not to ‘normal’ but to a rejuvenated industry. And when we can once again meet in person, we can ‘hit the ground running’, as they say, and meet the challenges we face head-on.
We look forward to these conver- sations, both on- and offline. See you soon!
Dr. Gunther Voswinckel President ITA
Editorial
Greetings from Dr. Gunther Voswinckel President International Tube Association
ITAtube Journal No1/July 2020
3