San Jose, California (PRWEB) January 31, 2013
Follow us on LinkedIn – Steel pipe industry dynamics are closely linked to the trends in construction and oil and gas industries and significantly influenced by the pace of infrastructure development projects. Prevailing economic conditions, thus, play a key role in determining the pace and extent of demand for steel pipes and tubes. Though the world economy began recovering on a cautious note in 2010 and early 2011, uncertainties brought on by the Eurozone debt crisis renewed fears of recession, which coupled with sluggish recovery in the US and contracting Japanese economy led to a slowdown in economic growth across advanced economies. The trickle down effect of this slowdown was also felt in emerging nations primarily in China in the form of cut down in capital inflows. Currently, of recovery in most nations, particularly across developed countries, remains overcast amid contractionary effects of fiscal austerity policies.
Improving economic environment and resurgent activity in automotive, construction, and mechanical engineering sectors is expected to spur demand for ERW Pipes. Escalating energy demand and increased focus on infrastructure development projects are expected to provide impetus to ERW Pipes demand in developing nations. Amidst the global economic upheavals, future growth opportunities for ERW pipes and tubes would primarily emerge from the oil and gas industry, led by continuous rise in investments for onshore and offshore pipeline projects, particularly in Asia, Eastern Europe, FSU, and North America. Rising prices of oil and gas and consequent increase in investments for exploration activity is expected to fuel demand for pipes used for transporting resources from oil wells to consumers, namely ERW pipes. The demand for ERW pipes from oil and gas industry would also be influenced by structural factors, such as the need to shift towards clean fuel alternatives namely gas, need for long-term infrastructure facilities, and geopolitical scenarios.
In addition to conventional markets of oil and gas pipelines and water infrastructure, steel pipes and tubes are increasingly being targeted at newer sectors such as urban infrastructure, construction, metros, piped gas distribution, fire safety segments, malls, airports, and commercial passenger vehicles. In these markets, pipes and tubes are used in applications such as fencing, cabling, fire safety, scaffolding, and bus body parts. Continuous rise in infrastructure investments in sectors such as power generation and automotive and increasing government investments in infrastructure projects including water and sewage systems augur well for the ERW pipes market.
As stated by the new market research report on Electric Resistance Welded Pipes, Asia-Pacific represents the largest regional market worldwide. Increasing demand from oil and gas and water infrastructure projects, industrial applications, and infrastructure, housing and irrigation projects and continued government support for these projects is expected to spur demand for ERW pipes in the coming years. China constitutes the largest market within Asia-Pacific, and is set to benefit from the rapidly growing construction, oil pipeline, highway construction, and water pipe sectors. Increased emphasis on infrastructure development activities and government efforts to bolster construction of water supply and treatment systems are expected to fuel demand for heating pipes, water supply and treatment pipes, drainage pipes, gas supply pipes, and large diameter steel pipes, among others.
Middle East represents the fastest growing regional market for ERW pipes, with growth largely attributed to intensifying drilling and exploration activity. Continued emphasis on developing new oil fields and increasing capacity of existing wells is boosting demand for steel pipes and tubes in the region. Additionally, increasing public and private sector investments in various infrastructure projects also provide opportunities for ERW pipe makers. Line Pipes represents the largest product category within the ERW pipes market. Growth in this segment market would be attributed to proposals of major oil and gas, fertilizer and power companies to establish cross-country line pipes. Asia-Pacific represents the largest market for line pipes with shipments projected to reach 10.1 million tons by 2015.
Oil Country Tubular Goods (OCTG) constitutes the fastest growing product segment in the global ERW pipes market. Though oil & gas drilling activity has slowed down in recent times, the escalating demand for oil and energy specifically from emerging economies such as India and China, and the subsequent increase in oil & gas exploration projects bode well for the OCTG market. OCTG pipes market is also expected to benefit from the continuous rise in prices of oil and gas, which are luring potential investors to fund drilling activity. Increasing demand for energy is likely to drive start up of several new oil and gas exploration projects, thereby necessitating the use of OCTG pipes.
Major players profiled in the report include Arabian Pipes Company, ArcelorMittal SA, ChelPipe, EVRAZ North America, JFE Steel Corporation, Nippon Steel & Sumitomo Metal Corporation, Northwest Pipe Company, OAO TMK, Salzgitter Mannesmann Line Pipe GmbH, Tata Steel Europe, Techint Group SpA, Tenaris S.A., United States Steel Corporation, and United Metallurgical Company /OMK, among others.
The research report titled “Electric Resistance Welded Pipes: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for global Electric Resistance Welded Pipes market for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Middle East, and Latin America. Key product segments analyzed include Mechanical Steel Tubing, Structural Tubing, Structural Steel Pipes, Pressure Tubing, Standard Pipes, Oil Country Tubular Goods, and Line Pipes.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/