Page 8 - ITAtube Journal 2 2025

Market information
Dr. Gunther Voswinckel, VOSCO GmbH
World Tube & Pipe Market: Factors
influencing the current situation
Dr. Gunther Voswinckel – Update as per August 2025
Welcome to ITA’s and VOSCO´s regular
bon footprint has become an increas-
presentation of the main worldwide
ingly important task for the industry.
economic factors influencing the tube
Pipe manufacturers are converting
and pipe industry.
their production facilities from gas to
electricity. Geopolitical and logistical
The new US government has declared
risk considerations, as well as current
its intention to continue expanding US
and future energy costs, are taking
oil and gas production. This stimulating
centre stage.
the demand for OCTG tubes and pipe-
lines in the US. OPEC+ has increased oil
Regions such as the USA, India, Turkey,
production since March this year. The
the Middle East and China are reap-
conflict between Israel and Iran has
ing the benefits of lower energy costs.
calmed down. Fears of an oil and gas
Political interventions and regulations
shortage in the region are subsiding.
are having an increasingly significant
Consequently, oil and gas prices have
influence on industry strategies and
fallen. Continued worldwide demand
measures. Due to the dynamic nature
for oil and gas, its distribution by pipe-
of current developments, it is becoming
lines, and demand for cars, machinery,
increasingly difficult for the industry to
and construction, especially in regions
react appropriately. Some manufacturers
with high GDP growth, will maintain
are losing confidence in their ability to
demand for tubular products. New
compete on the global market given their
market segments such as CCUS (Car-
current cost levels and are reducing e.g.
bon Capture and Storage) and hydro-
their involvement in high cost regions
gen pipelines will generate additional
like Europe as a result. Consequently,
demand for tubular products, requir-
some countries/regions are looking for
ing larger quantities of higher-alloyed
suitable political countermeasures to
and stainless-steel tubes. However,
offset their cost disadvantages.
the trend towards customer-centred
All supply sources are under critical
production will continue to influence
scrutiny, and we can only hope that
the landscape for tube manufacturers.
international trade will not be affected
Prices of raw materials for the steel and
too severely as a result.
pipe industry appear to have stabilised.
Nevertheless, the markets remain nerv-
However, disruptive times also create
ous and there is potential for further
new opportunities for economic success.
volatility.
In addition to oil and gas, new markets
such as electromobility, productivity
A further challenge could arise if politi-
improvements at production sites, and
cal measures to prevent climate change
improved customer service as part of
are not introduced in a balanced man-
the transition to more environmentally
ner. This could lead to energy-intensive
friendly practices offer opportunities
industries relocating to regions with
that must be exploited. The availability
lower energy costs. However, the bal-
of skilled personnel is increasingly chal-
ance between supply and demand in the
lenging in some regions like the US.
pipe industry has largely been restored,
resulting in calmer price volatility.
Many technology providers have al-
ready responded to this by expanding
The transition to environmentally
their product portfolio to include green,
friendly pipe production with a low car-
robotic and digital solutions.
8 ITAtube Journal August 2025