Price developments

The strong market demand at the beginning of 2018 caused a strong upward pressure on prices. Delivery times were getting longer and stocks in the trade sector increased. End-users too significantly increased their stocks. There was a reversal at the beginning of the fourth quarter. Demand from the European automotive industry slowed down and the demand in the oil and gas market was also lower than expected. The built-up stocks were used. With a weakening market demand, delivery times normalized and prices stabilized.

In addition to the usual market forces, the global political conditions had a major impact on the pipe and tube market. The consequences of the import duties and import-limiting measures imposed by the United States were clearly felt. Initially these measures resulted in a drastic increase in prices on the American domestic market. As a result of strong domestic market demand these price increases were largely passed on to end-users. The impact on European pipe mills, which produce high-quality materials, was limited. For producers in China, Turkey and Russia this, however, resulted in a significant decrease in volume to the United States. This led to an increase in volume to the European market, with a significant decrease in prices as a result. To counteract this, the European Union introduced import quota entitled ‘Safeguard’. This made it possible for the import stream to continue to exist, but limited its growth. Partly due to the reduced demand, the effect was limited. In the meantime, a further consolidation is taking place on the European steel market and various mergers or far-reaching partnerships have been announced.