Replacement of aging pipelines to drive demand for ERW pipes, says report

The comprehensive global report “Electric Resistance Welded Pipes and Tubes: A Global Strategic Business Report,” released by Global Industry Analysts Inc., San Jose, Calif., projects that the global market for ERW pipes and tubes will reach 76.8 million tons by 2020, driven by the recovery in key end-use markets and the need to replace aging pipelines installed at major oil and gas project sites.

Although economic uncertainty and low oil prices have led oil companies to curtail operations and cut back on drilling budgets, demand outlook for ERW pipes continues to remain positive given the steady rise in oil consumption and the need for infrastructure to support sustained production and transportation of oil. Booming shale gas exploration in the U.S. also is expected to boost demand for line pipes in coming years.

Replacement of aging, corroded pipelines, particularly in mature markets such as the U.S. and Europe, is expected to drive huge demand for ERW pipes. The market for large-diameter line pipe, for instance, is supported primarily by burgeoning demand for replacement and maintenance.

Resurgence in automotive manufacturing and construction also will drive demand for ERW steel pipes and tubes in coming years. The need for developing water and sewage infrastructure in the wake of rising populations also will spur demand.