German Steel Tube Association
2021 was marked by a significant recovery in demand with ongoing obstacles to economic development due to the effects of the corona pandemic. Supply bottlenecks for raw materials and semiconductors as well as delays in the logistics sector slowed down capacity utilization, so that incoming orders often exceeded production, which often led to longer delivery times.
Resumption of energy demand led to a recovery in the oil and gas market. Increased demand of the energy industry for oilfield pipes contributed to a increased steel pipe production. Demand for steel tubes from other key customer sectors such as mechanical and plant engineering, the automotive industry, chemical industry and the construction sector was partially held back by supply bottlenecks.
Production in the steel tube industry overall rose slightly compared to the previous year’s figure that had collapsed during the corona pandemic. German steel tube production increased by almost three percent to 1.8 million tons in 2021. In the EU, production increased from 10.2 to 11 million tonnes. At 151 million tonnes, global steel tube production was around two percent higher than in the previous year.
After a good start to 2022, the economic development will be slowed down by partially dramatically rising raw material prices, continuing bottlenecks in logistics and again stronger corona-related restrictions in the Far East. The disruptions in the flow of goods and financial and trade policy distortions resulting from Russia’s invasion of Ukraine will put an additional strain on the economy.
Markets of the steel tube industry
The evaluation of the accounts of steel tube processing industries for the steel tube production shows the dominance of the energy sector.