World demand for steel pipe to reach 79.7 million metric tons, says study

Global demand for steel pipe is projected to advance 3.5 percent per annum through 2019 to 79.7 million metric tons, with growth paced by continued strong increases in developing markets. The pace of gains will decelerate from that of the 2009-2014 period as construction activity slows in China and other developing countries and as oil and gas exploration moderates in North America after a period of rapid growth. These and other trends are presented in “World Steel Pipe,” a new study from Freedonia Group, a Cleveland-based industry research firm.

China, by far the world's largest national market with 28 percent of the global total in 2014, was a primary driver of growth in steel pipe demand between 2004 and 2014. "Through the forecast period, advances in steel pipe demand in China are projected to decelerate significantly; nevertheless, growth will remain above the global average," noted analyst Mariel Behnke. In contrast to slowing growth in the Chinese market, demand for steel pipe in several other countries in Asia is projected to accelerate through 2019. India will experience strong improvement in growth, driven by an acceleration in construction spending and expansion in its manufacturing sector, while growth in demand in Indonesia will be supported by increased output from its manufacturing sector.

The North American market contracted between 2004 and 2009 because of economic recession but grew robustly from 2009 to 2014, driven by a boom in demand for pipe for oil and gas production. Through 2019, demand in North America is projected to decelerate significantly as energy sector investment slows down following a scaling back in oil and gas production and exploration resulting from the collapse of oil prices that started in late 2014.

For more information, visit www.freedoniagroup.com/documentdetails.aspx?referrerid=rf-prnews&studyid=3362.