Prices have fallen during the past three years due to a drop in global steel prices and strong import competition.
Los Angeles, CA (PRWEB) November 09, 2014
Industrial welded carbon steel pipes have a buyer power score of 3.5 out of 5, which indicates generally favorable negotiating conditions for buyers. During the past three years, buyers have gained greater negotiation power due to a number of beneficial factors existing in the industrial welded carbon steel pipes market. According to IBISWorld analyst Deonta Smith, low market share concentration, low product specialization and minimal switching costs all strengthen buyer negotiation power. Further, because industrial welded carbon steel pipe production facilities require a substantial investment of capital, it is difficult for individual companies to expand and capture a large market share. Therefore, suppliers aggressively compete in terms of product quality and price to win business; as a result, buyers should face minimal risks in the quality and functionality of procured industrial welded carbon steel pipes. Major market suppliers include Evraz Inc. NA, Tenaris SA and MRC Global.
Alternatively, high price volatility during the past three years has undermined buyer power. Due to unpredictable fluctuations in operating expenditures, price volatility has been high. Buyers are worse off when price volatility is high because it means they are rushed to make their purchasing decisions due to fear of major price spikes in the near future. Fortunately for buyers, says Smith, the price of input materials such as steel has fallen during the past three years, leading to lower production costs and subsequently lower industrial welded carbon steel pipe prices. Also, rising market competition and import penetration have mitigated price volatility of industrial welded carbon steel pipes.
The market conditions that have shaped the industrial welded carbon steel pipes market during the past three years will continue during the three years to 2017, which will further bolster buyer power. During the period, buyers are likely to benefit from intensifying price competition as imports of industrial welded carbon steel pipes increase. However, the world price of steel is expected to increase from 2014 to 2017, which will lead to rising pipe prices. For more information, visit IBISWorld’s Industrial Welded Carbon Steel Pipes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial welded carbon steel pipes. Industrial welded carbon steel pipe manufacturers produce pipes used for industrial applications such as oil and gas extraction and distribution, pulp and paper manufacturing, power generation and in heat exchangers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.