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Market information
Figure 11: World Steel Tube and Pipe Production Welded < 406 mm (ktons) Source: ITA tube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
the capability of relevant pipe pro- ducers to qualify for such pipeline projects. The average world pipe producing plant utilization is on a very low level of only about 30 %. The world production is shrinking since 2017 (-7 %), with (-1 %) in 2019 1st quarter. To protect the local producers, the present US government has only recently started to put import duties on line pipe imports to protect US line pipe producers.
The production of welded pipes ≥ 406 mm OD is with about 22.000 tons/year (+/-5 %) by far the small- est product segment (Figure 13). It is mainly applied at large diam- eter line pipe projects. As already stated earlier such projects often depend on powerful stake holders’ interventions and the capabil- ity of relevant pipe producers to qualify for such pipeline projects. The average world pipe produc- ing plant utilization is on a very low level of only about 30 %. The world production is shrinking since 2017 (-7 %), with (-1 %) in 2019 1st quarter. To protect the local producers, the present US government has only recently started to put import duties on line pipe imports to protect US line pipe producers.
This political signal seems to show the desired effect on the US pipe production! The 1st quarter 2019 production numbers (Figure 14) re ect this again impressively. Only the US tube and pipe produc- ers have enlarged their production by +40 %. All other countries/ regions reduced their production with the most signi cant reduc- tion in EU 27 (-42 %). Japan (-5 %) and CIS (-4 %) have more moder- ate production declines.
This trend re ects the decreased demand for pipelines in these regions and political measures.
Figure 12: Regional Steel Tube and Pipe Production Welded < 406 mm (ktons) Source: ITA tube Journal/Wirtschaftsvereinigung Stahlrohre e.V.
ate increase in 1st quarter 2019 (+1%). This large volume segment is steadily growing. But the regional breakdown also shows more variations: China (+2%), EU (+4%) Japan (+3%) and ROW (+3%) are reporting an increase. CIS (-10%) is outbalancing these production gures.
Many growing markets can be served by these tubes and pipe dimensions, allowing producers
to capitalize also from the various market segment prospects as dis- cussed before in this publication.
The production of welded pipes ≥ 406 mm OD is with about 22.000 tons/year (+/- 5 %) by far the smallest product segment (Figure 13). It is mainly applied at large diameter line pipe projects. As already stated earlier such pro- jects often depend on powerful stake holders’ interventions and
ITAtube Journal No3/October 2019