At the 2nd Global Steel Summit held in Dubai, Dr. Gunther Voswinckel, President of the International Tube Association, made an important presentation on commercial pipes and tubes, OCTG (Oil Field Tubular Products) and line pipes. Voswinckel discussed current trends and price fluctuations in global pipe production in detail.
Dr. Voswinckel said global pipe production grew again in 2023 after a small decline in 2022. “Production growth continued, with a total increase of 18,300 tons. China accounted for 57% of world pipe and tube production, with an increase of 12,200 tons,” he said. He also noted that Commonwealth of Independent States (CIS) countries increased their production by 1,000 tons to compensate for the impact of sanctions; however, production of welded pipe under 406 mm OD decreased by 1,700 tons.
Voswinckel said that India increased its production by 800 tons and expanded its market share, while the European Union saw a 300-ton decrease in production. He added that this decrease was mainly due to the closing of Vallourec's facilities in Europe.
Significant decreases in prices
Underlining that there have been significant decreases in pipe prices despite the increase in production, Dr. Voswinckel said, “The general pipe price index has decreased by 23% since 2023. In particular, the price of OCTG P110 type pipes has decreased by 47% to USD 1,500 since January 2023. Hollow sections S235 pipe, on the other hand, decreased by 27% to USD 220 over the same period,” he said.
Discussing the developments in the pipe market, Voswinckel highlighted the strong demand for small diameter pipes. “The increase in pipe production has exceeded the Gross Domestic Product (GDP) growth in some countries. In the CIS region, pipe production has increased by 50-70%, but demand for pipes larger than 16 inches has decreased,” he said.
Fluctuations in raw material prices affect the market
Noting that price fluctuations are influenced by changes in coal and raw material prices, Dr. Voswinckel said, “The price decreases in OCTG pipes have had a significant impact on market dynamics. This situation requires producers and suppliers to reconsider their strategies,” said Dr. Voswinckel.
Completing his presentation with a detailed analysis of the current situation in the pipe and tube industry, Voswinckel also shared his predictions for the future of the sector. He underlined that despite global economic uncertainties, the demand for small diameter pipes in particular will play an important role in the growth of the sector.
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