Long-term demand for large welded tubes – particularly from the oil and gas sector – is unlikely to rebound significantly, as the EU continues its shift toward LNG imports, reducing reliance on pipeline gas, says Eurofer.
This transition, combined with subdued global oil demand and a weak economic outlook, has delayed or stalled new pipeline projects, the association says in a report seen by Kallanish.
In parallel, tube demand from the construction sector is expected to soften further, offering limited support to overall output growth.
The automotive and engineering sectors are forecast to provide relatively stronger, more stable demand.
Overall, only a modest recovery is anticipated in EU steel tube sector activity in 2025 (+0.9%) and 2026 (+1%), though structural headwinds persist.
In 2023, EU steel tube output fell by 1.5%, marking the start of a recession that deepened in 2024 with a sharper 3.2% decline. Output contracted for a fourth consecutive quarter in Q4 2024 (-2.8%).
The steel tube sector has been under pressure since the energy shock of summer 2022. Despite falling energy and gas prices, lingering uncertainty has undermined investment, particularly in pipeline infrastructure.
The recovery that began post-pandemic in 2021 was abruptly disrupted in late 2022 by the war in Ukraine and ongoing supply chain disruptions – conditions that continue to weigh on the sector.
Elina Virchenko Bulgaria
