EU steel tube output expected to rise 2.7% in 2014: EUROFER

ALBANY (Scrap Monster): The robust demand growth from construction, automotive and metal goods industry is likely to boost the production of small welded and seamless steel tubes, suggests the latest production update released by EUROFER. The steel tube output is expected to rise 2.7% in 2014 and by 3.6% in 2015.

According to EUROFER, the steel tube production rose 3.2% in Q1 this year. However, strong divergence was seen among countries in the region. A sharp decline was observed in production of steel tubes by Germany. Meanwhile the recovery in construction, automotive and metal goods sector kept the production levels stable in other large EU countries.

The supply of tubes for the 1^st string of Southstream pipeline project already commenced during Q2. The deliveries are expected to gain further momentum in H2 this year. The demand may grow further in H1 2015. This should revive the tube production in Germany. The prospects for other tube markets are also expected to remain bright during the rest of 2014 and H1 of 2015.

EUROFER further notes that EU apparent steel consumption is likely to increase by 3.7% in 2014 and by almost 3% in 2015. Third country imports look set to remain high during the rest of the year and in 2015. The trade body fears that aggressive imports from third countries may badly affect the EU steel sector, which is already suffering from intense margin pressure.