San Jose, CA (PRWEB) August 14, 2013
Follow us on LinkedIn – Demand for seamless pipes and tubes is primarily linked to the dynamics of the energy sector and closely follows the trend in oil and gas rigs count. Given the high strength and corrosion resistant features of seamless pipes, these products also find use in chemical and other types of processing industries, steam boilers, pipelines, and applications requiring high pressure and steam conditions. Over the years, explosive growth in oil exploration and production operations has ensured strong demand for oil country tubular goods (OCTG) pipes. Despite the uncertainty prevailing in the global economy and the consequent depressed demand for steel products, seamless OCTG pipes continued to grow backed by steady demand and strong pricing scenario. However, the use of industrial seamless pipes is directly linked to the health of the economy, as a result of which prevailing economic conditions play a significant role in determining the pace and extent of demand for such pipes.
The year 2012 marked a period of subdued growth for seamless pipes as demand for OCTG pipes weakened, particularly in the United States. In Europe, growth was affected by contraction in demand from construction, machine manufacturing, automotive, and power generation sectors. In Russia, low demand from the industrial sector affected regional sales, while growth in the OCTG segment was sustained by demand from domestic and overseas gas and oil projects. In Asia, customers of general grade pipes and tubes exhibited reluctance in making new purchases in view of the looming threat of slowdown due to the Eurozone crisis.
Outlook for seamless pipes in the near term remains modest as manufacturers keep a close vigilance on the rig count in the US and economic recovery in the EU. In the long run, the market is expected to witness improving demand conditions led by resurgent activity across several end-use industries, specifically the energy and manufacturing sector. Despite the current slowdown, North America remains one of the most promising markets for seamless tubes owing to the rise in drilling activity and rise in rig count. Apart from North America, strong growth opportunities are emerging in the Middle East region, specifically Saudi Arabia and the UAE which are witnessing favorable economic prospects. High growth potential exists for oil country tubular goods (OCTG), due to the new offshore drilling and exploration activity and addition of pipelines for petrochemical transmission. The emergence of shale gas production as a key area of focus for the energy industry in North America, Asia, Australia and Europe is facilitating the establishment of pipeline networks thus benefiting demand for pipes. Growing complexity of drilling operations is driving demand for high grade seamless pipes capable of enduring harsh environments.
As stated by the new market research report on Seamless Pipes and Tubes, Asia-Pacific represents the largest market worldwide. Demand in the region is primarily attributed to the energy sector. China ranks among the largest producers and consumers of steel and steel products including steel pipes and tubes. Despite the slowdown in 2012, China continues to be a key market for seamless pipes. Rapid increase in infrastructure facilities across emerging markets, and resurgence in automobile, industrial, and construction markets bode well for the region.
Russia represents another important market for seamless pipes given the high level of exploration and production activity in the oil and gas industry. A distinct trend visible in Russia is the shift towards unconventional and deeper wells involving directional and horizontal drilling activities across the Far East, Eastern Siberia, Caspian, and North Caucasus regions, which is in turn fostering demand for pipes used in extracting oil and gas.
Major players covered in the report include ArcelorMittal SA, Boomerang Tube LLC, Bri-Chem Corporation, EVRAZ North America, ChelPipe, JFE Steel Corporation, Nippon Steel & Sumitomo Metal Corporation, Jindal SAW Ltd., Maharashtra Seamless Limited, OAO TMK, Techint Group SpA, Tianjin Pipe (Group) Corporation, United States Steel Corporation, Vallourec & Mannesmann Tubes, and Wheatland Tube Company.
The research report titled “Seamless Pipes and Tubes: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, and strategic industry activities. The report provides market estimates and projections 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, India, South Korea, and Rest of Asia-Pacific), Middle East & Africa, and Latin America.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Seamless_Pipes_and_Tubes_Market_Report.asp
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.
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