The outlook for the tube and pipe market remains positive, supported by energy security concerns, new pipeline projects, growth in carbon capture and hydrogen infrastructure, industrial growth in India, China and the Middle East, and global infrastructure development, Kallanish learns from the International Tube Association (ITA).
However, the market environment is expected to remain volatile in the short term due to geopolitical risks, high energy costs, trade restrictions and investment uncertainty, an ITA report explains. Stronger growth is expected in the longer term.
In 2025 the global tube and pipe market recovered, with production increasing by 10% year-on-year to an estimated 177.9 million tonnes, driven mainly by pipeline construction linked to energy security concerns and shifting global gas flows.
Production growth was strongest in pipeline tubes larger than 16” outside diameter, rising by 37% to 31mt in 2025, from 22.5mt, driven by new pipeline projects linked to global energy logistics.
Tube pricing shows mixed trends, with OCTG prices declining to around $1,800/t in early 2026 from about $2,000/t in 2025. Structural pipe prices have been relatively stable at around $600/t, supported by infrastructure demand, although margins are increasingly under pressure due to rising input costs.
The cost base is becoming increasingly volatile, ITA notes, as around 73% of global pipe production is welded pipe, meaning producers are highly exposed to hot-rolled coil prices.
Regional differences in electricity and gas prices remain a key factor determining global tube and pipe production costs and competitiveness. Producers in the US, China, India, Türkiye and the Middle East benefit from structurally lower energy costs. European producers face significantly higher electricity and LNG prices, pressuring margins, limiting production and increasing the risk of production shifting to lower-cost regions.
China accounts for around 52% of global output. India is the fastest-growing producer, according to the association. The US market is supported mainly by pipeline demand, while Europe remains constrained by high costs and relatively weak industrial demand. Energy costs are a major risk factor for tube prices, particularly in LNG-dependent regions where gas prices increased sharply following disruptions in the Strait of Hormuz. Oil price fluctuations, which directly affect OCTG demand, hot-rolled coil price movements, geopolitical disruptions and trade measures remain additional sources of price volatility.
Since late February, oil prices increased from around $60/barrel to more than $100/bbl. The new, higher levels support OCTG demand but increase cost volatility and economic uncertainty.
The ITA report notes that the oil and gas sector remains the dominant consumer, accounting for around 51% of global tube demand, followed by automotive, mechanical engineering and construction. Pipeline construction, shale gas development and corrosion-resistant applications continue to support OCTG and line pipe demand. New demand segments are emerging from hydrogen transport, carbon capture infrastructure and electric vehicle production, where tubular products are increasingly used in vehicle structures.
