April 2016, Vol. 71 No. 4
Newsline
Study Projects Global Steel Pipe Demand Advancements
A new study from Freedonia Group, a Cleveland industry research firm, entitled “World Steel Pipe” projects the global steel pipe demand to advance 3.5 percent per annum through 2019 to 79.7 million metric tons, with growth lead by continual increasing in developing markets.
According to the study, the pace of gains will decelerate from the 2009-2014 period as oil and gas exploration moderates in North America, and construction activity decreases in China and other developing counties.
Additionally, the study expects steel pipe used in equipment manufacturing to see above-average growth through 2019, also seeing significant use in the construction market in various applications including conduit, sewer and drainage.
According to analyst Mariel Behnke, China, the primary driver of growth in steel pipe demand between 2004 and 2014, will see a significant deceleration in steel pipe demand in the coming years. Nonetheless, he projects the country’s growth to remain above the global average.
The study projects that other Asian countries will see a rise in steel pipe demand through 2019, including India who will see strong growth improvements due to an acceleration in construction spending and manufacturing expansion. The growth in Indonesia will also rise, supported by increasing output in the country’s manufacturing sector.
In North America, demand is projected to significantly decelerate through 2019, due to a slowdown in investment in the energy sector resulting from the scaling back of oil and gas production plans and exploration after the beginning of a collapse in oil prices in the second half of 2014.
The full World Steel Pipe report is available for purchase from The Freedonia Group. (440) 684-9600, www.freedoniagroup.com
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