EUROFER forecasts a 2% y-o-y decrease in EU steel pipe production for 2024. While the second quarter showed a partial recovery, with a 1.6% y-o-y decrease compared to a 4.4% decrease in the first quarter, long-term demand remains weak due to the shift towards LNG for energy needs, reducing demand for large-diameter pipelines used in oil and gas.
EUROFER's recently released 2024-2025 Economic and Steel Market report projects a 1.8% decrease in overall EU steel consumption for 2024, but anticipates a recovery in 2025. Despite challenging conditions impacting construction demand, steady demand from the automotive and machinery sectors is expected.
The energy transition and global economic uncertainty will make 2024 a challenging year for the EU steel pipe sector. However, stable demand from the automotive and machinery sectors, and the projected recovery in 2025, offer some optimism for the future. EUROFER's report advises sector players to adopt a flexible and cautious approach to future planning.
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