Despite the oil and gas industry’s growing focus on low-carbon alternatives, many new pipeline projects worldwide remain in the planning stages. Several of these projects are expected to be announced or receive approvals before 2030. The current oil price continues to support investment in pipeline development.
In the first half of 2024, most pipemakers reported disappointing confirmed orders. However, there is optimism for future projects, with a significant volume of enquiries from OEMs. Carbon dioxide transmission pipelines are gaining interest in the United States, Canada, the United Kingdom, and other parts of Europe.
Surprisingly, demand for API coils and plates was lower than expected in the first six months of this year. European plate mills faced project delays, resulting in available production capacity. Buyers are experiencing delivery lead times of six to seven weeks.
European X60/X65 hot rolled plate selling values declined during the April/June period, reaching what experts believe is the current cycle’s bottom. While Asian import offers for API hot rolled plate are comparable to European prices, high container costs and shipping delays make them less appealing to buyers.
In Asia, X60/X65 hot rolled plate prices saw a marginal decline quarter-on-quarter but remain on par with European prices in euro terms. Some plate-producing steelmakers in the region still offer September/October delivery lead times for API material. Additionally, API hot rolled coil prices also decreased quarter-on-quarter.
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