Page 9 - ITA Journal 3-2018

than commodity-grade tubes.
Tube suppliers located in high- cost countries are successfully taking steps to counter strong international competition. As well as seeking to specialize in prod- ucts with higher technical require- ments, they are globalizing into markets with increased demand and streamlining their productiv- ity to reduce production costs.
Finally, the impact of currency exchange rates on the pipe market is discussed. A strong euro throughout 2017 and early 2018 was seen to cause export disad- vantages. As the euro is currently falling again, markets should be able to compensate suppliers for some of the disadvantages.
Looking at the main market seg- ments for steel pipe suppliers: this market is dominated by the OCTG industry (51 %). Besides this, the automotive (15 %), mechanical (9 %) and construction industries (5 %) are also strong market seg- ments for the sector (Fig. 1).
The automotive and construction
markets in particular are char-
acterized by stability and high
Fig. 1: Markets for Steel Pipe Industries in 2012
Source: ITAtube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
demand. Fig. 2: World car production 2014-17
World car production levels grew overall by about 2% in 2017 (Fig. 2). Regionally, growth rates differed considerably, with growth in Europe (+ 3 %), Mercosur (+ 20 %) and Asia (+ 3 %, dominated by China at + 7 %) offset by the Nafta market (- 4 %) (Fig. 3).
The overall health of a highly attractive automotive market is amply illustrated by the remarka- ble growth rate of 13 % displayed by the German car production indus- try from May 2017 to May 2018.
In 2018, further growth was reported from Russia (+ 20 %),
Source: German Association of Automotive Industry (VDA), June 27, 2018.
Fig. 3: World car production by region 2014-17
Source: German Association of Automotive Industry (VDA), June 27, 2018.
Market information
ITAtube Journal No3/October 2018
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