SteelOrbis offers independent insights and market analyses

PUBLISHED: 23 Jul 10

Marina Lozovaya, Global Tube & Pipe Market Specialist
Marina Lozovaya, Global Tube & Pipe Market Specialist

At time of writing (late July 2010) the international steel tube & pipe market is slow with most prices experiencing new cyclical lows. Traders and producers are waiting to see what will happen, and whether and to what extent the markets will recover. The price policies of seamless and welded steel pipe producers depend very much on prices for raw materials, which are moving in unexpected directions. Many countries around the world have pushed through stimulus packages which include infrastructure investments and other spending that will increase steel pipe consumption, along with overall economic activity. It appears that although the pipe industry, along with the global steel industry, may be in for a prolonged downturn, the markets seem to have adjusted to the new “recession dynamics”.

The current situation in the global steel tube & pipe market is further complicated by various factors such as financial problems and summer holidays in Europe, overcapacity and cancellation of tax rebates in China and religious holidays in Middle East countries. Further dynamics in the international steel pipe market will totally depend on the situation with iron ore, scrap, flat and long products. A slow decline till the end of summer and recovery in September/October is predicted. But the crucial role here will be the situation with developed economies. At the moment there are few reasons for optimism and by early autumn it is not likely to improve essentially.

Near the end of last year, 2010 was predicted to be a “Year of Recovery”. In the beginning of this year, the timeframe for steel’s resurgence in the market shifted to the second half of 2010. But by spring, many experts predicted the “real” recovery, that is, increases in demand and not just prices, would not be seen until 2011. In SteelOrbis’ view, however, such inconsistent predictions are no reason to be pessimistic. The overall consensus in the steel industry seems to be that 2010 will at least be better than 2009 and some improvement is better than none.

SteelOrbis' market intelligence service provides updates on the latest pricing and trends in the steel world with daily price reports and market analyses derived from actual transactions. With its independent stance and its expertise and proficiency in the market, SteelOrbis carries out comprehensive studies which analyse the dynamics of the steel market, issuing its findings in market reports. Tailored to the client’s product, region or related market of interest, SteelOrbis' market reports provide insight into and analysis of global steel markets. The company provides independent, neutral, accurate and timely market information and forecasts from all corners of the world to better understand the dynamics, trends and developments in steel markets.

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SteelOrbis offers independent insights and market analyses