Page 12 - ITAtube Journal 2/2019

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Market information
Figure 10: Bearing Industry Supply Chain - Tube vs Forging Process Source: Sanji Steel
Figure 11: World Bearing Production Growth (1000 tons) - Source: IMARC
largest world car markets, China, the US and Europe, are consoli- dating at almost “zero” growth. Nonetheless, the automotive market, due to its technological requirements, remains an inter- esting one for tube producers and tube processors.
The market segment mechanical engineering, representing 9% of the total tube and pipe market, is highly diverse due to an almost endless number of potential applications. In my last article (Journal I’19) I highlighted the fast-growing hydraulic cylinder tube market. This time I would like to highlight the ball bearing market. To produce bearing rings,
two competing process routes are applied: forged rings or machined rings from seamless tubes. (Fig.10) Therefore, ball bearing tube producers need to emphasise the advantages of the production process via tubes.
According to IMARC, in 2017 the global ball bearing market had a volume of 33 billion tons. This market is projected to attain a volume of 47 billion tons by 2023, exhibiting a CAGR of 6.2% during the years 2018-2023. (Fig.11)
Such substantial growth potential means the ball bearing industry market represents an attractive volume market for tubes as well. Tube producers, processors and service providers who identify the customer needs and serve best value to their customers have the best potential to maintain sus- tainable business. At the recent ITA conference this year in Düssel- dorf, Mr. Vincent Yang from SANJI Steel reported on their strategic 4-Value Model, illustrating how they serve their bearing industry customers with optimum sensibil- ity to customer requirements.
Another attractive market for tube producers is the construction market, representing about 5% of world tube production. The global construction market is growing in tandem with global GDP growth,
as we discussed in the ITAtube Journal in October 2018. Primary market applications for tubes in the construction market are sky- scrapers and bridges. Here we nd signi cant competition between steel/tube structures on the one hand, and concrete elements on the other. With regard to skyscrap- ers, the trend in emerging econo- mies to build high-rise towers is favorable toward the application of steel/tube structures. (Fig.12)
The same strong competition between steel/pipe structures and concrete elements applies for bridges. (Fig.13) The Izmit bay crossing bridge, as the 4th longest bridge in the world, is made of steel and pipe structures. Steel and pipe structure bridges such as this are characterized by a long lifetime and better maintain- ability compared to bridges built from concrete structures.
Both of these important segments of the construction market require major lobbying efforts on the part of the tube producing industry to further convince regulation authorities and project stakehold- ers about the advantages of steel/ tube structures as cost effective, aesthetic and sustainable alterna- tives to concrete elements.
All these steel tube and pipe markets can be subdivided into
ITAtube Journal No2/May 2019