The primary cause is a significant surplus in production capacity, particularly among large manufacturers, amid weak domestic demand. In 2024, output of small and medium diameter (SMD) structural pipes fell by 5% to 5.8 million tonnes, while consumption stood at just around 4 million tonnes. In Q1 2025, production declined by 18% and consumption by 14%.
The drop in demand has impacted nearly all segments: shaped pipes (–5%), general-purpose pipes (–7%), bearing pipes (–28%), and stainless pipes (–6%). The only exception was boiler pipes, which saw an 8% increase.
The outlook for the year indicates further contraction, with consumption expected to fall to 1.9–2 million tonnes. While short-term demand spikes may occur during peak construction seasons, the overall trend remains negative. Large producers are particularly vulnerable due to high logistics costs and low profitability in the individual housing sector, which limits their flexibility. In contrast, smaller plants located closer to end users are faring better.
A potential growth driver could be the expansion of gas distribution networks, but without government support, this is unlikely to materialize.
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