Page 8 - ITAtube Journal 1 2026

Market information
Dr. Gunther Voswinckel, VOSCO GmbH
World Tube & Pipe Market: Factors
influencing the current situation
Dr. Gunther Voswinckel – Update as per April 2026
Welcome to ITA’s and VOSCO´s regular
presentation of the main worldwide
economic factors influencing the tube
and pipe industry.
The conflict in the Middle East has
entered a new phase since US and
Israeli troops attacked Iran on 28th of
February 2026. Attacks by Iran on oil
and gas vessels in the Strait of Hormuz
have created a threatening situation,
resulting in international insurance
companies refusing to insure vessels
passing through the strait. Conse-
quently, around 26% of the global
maritime oil and gas trade has effec-
tively been blocked. Much of the oil
and gas transported through the Strait
line tubes larger than 16” OD even
increased by almost 40%.
Oil and gas exploration in challenging
environmental conditions requires
corrosion-resistant tubular products,
creating opportunities for advanced
tube producers.
New market segments, such as carbon
capture and storage (CCUS) and hydro-
gen pipelines, will create extra demand
for tubular products. This will require
larger quantities of higher-alloyed
stainless steel and so-called sour gas
alloys. The shift towards custom-
er-centred production will continue to
influence the landscape for tube manu-
facturers.
of Hormuz is destined for Asian coun-
tries such as China, India and South
Korea. With Iran now attacking oil
and gas infrastructure in other Middle
Eastern countries, the conflict is at
risk of further escalation. The energy
market is reacting with fears of possi-
ble regional shortages of oil and gas,
causing significant price increases.
Hopefully, this military conflict will be
resolved quickly. Otherwise, the world
economy will suffer major negative con-
sequences. This conflict again highlights
the sensitivity of logistical bottlenecks
such as the Strait of Hormuz. Consid-
ering alternative logistical options will
probably lead to new pipeline projects
designed to bypass such chokepoints.
Ongoing global demand for oil and
gas, its transmission via pipelines and
demand for cars, machinery and con-
struction, particularly in regions with
Prices of raw materials for steel and
pipe products are rising again, and
markets remain nervous amid the
potential for further volatility.
There is still a risk that climate change
policies will not be implemented in a
balanced way, causing energy-intensive
industries to shift to regions with lower
energy costs. Nevertheless, the supply
and demand balance in the pipe indus-
try has largely been restored, resulting
in more stable prices.
The shift towards environmentally
friendly pipe production with a low
carbon footprint is becoming increas-
ingly important. Pipe manufacturers
are converting their facilities from gas
to electricity. Geopolitical and logisti-
cal risks, as well as current and future
energy costs, remain key considera-
tions.
high GDP growth, will support demand
for tubular products.
Regions such as the USA, India, Turkey,
the Middle East and China benefit from
Demand for tubes and pipes remained
lower energy costs. Political inter-
high and encouraging in 2025. Con-
ventions and regulations are having
sequently, tube and pipe production
an increasingly significant influence
increased by 10%. Demand for pipe-
on industry strategies. The dynamic
8 ITAtube Journal April 2026