EU steel pipe production to grow 2.7 percent in 2014 - EUROFER

Strong growth in demand from the construction sector, automotive, steel fabrication and oil and gas industries, according to the EUROFER report, could lead to an increase in the production of welded and seamless steel pipes, which is expected to increase by 2.7 percent in 2014 and by 3.6 percent. in 2015.

According to EUROFER, the production of steel pipes in the first half of this year increased slightly, despite a sharp decline in the production of steel pipes in Germany. Meanwhile, the recovery in construction, metal production and the automotive industry has kept pipe production stable in other large EU countries. However, there was strong divergence among the countries in the region.

The delivery of pipes for the South Stream gas pipeline project has already begun in the second quarter of 2014. Deliveries are expected to pick up in the second half of this year. Demand may continue to grow in the first half of 2015. This should revive the production of pipes in Germany. Prospects for other pipe markets also remain bright for the remainder of 2014 and the first half of 2015.

EUROFER also notes that steel consumption in the EU will increase by 3.7 percent in 2014 and by almost 3 percent in 2015. Imports from third countries are expected to remain high throughout the rest of this year and into 2015. The trade organization fears that aggressive imports from third countries could harm the EU's steel sector, which is already suffering from strong margin pressures.