EUROFER stated that the sector benefited from a post-pandemic recovery in 2021, but that momentum was sharply disrupted in the second half of 2022 due to war-related factors and supply chain constraints. Uncertainty about energy prices following the energy shock in the summer of 2022 has persisted over the past three years, despite lower gas and oil prices driven by weaker global growth expectations and subdued demand. Combined with broader economic uncertainty, this has had a strong impact on investment in the sector, including pipeline projects across the EU.
Production in the EU steel pipe sector declined slightly by 1.4 percent in 2023, followed by a further decline of 2.4 percent in 2024. A slight recovery is forecast for 2025, with growth of 0.2 percent, followed by moderate growth of 0.8 percent in 2026 and 1.5 percent in 2027. In the long term, EUROFER expects demand for steel pipes from the oil and gas sector to remain limited as the EU continues to transition to LNG transportation, reducing its dependence on pipeline gas.
