SPECIAL TUBES
INDUSTRY OUTLOOK
Large-diametre pipe production is exposed to fierce international competition
Challenges for the steel tube and flange industry Frank Harms, managing director of the German steel tubes federation Wirtschaftsvereinigung Stahlrohre and flanges federation Fachvereinigung Stahlflanschen, comments ...
CONTACT: Tel: +49 211 / 4564 - 130,
Email: frank.harms@wv-stahlrohre.de
T
he year 2019 as a whole developed weaker than expected. Raw material price trends did not prove to be a strong base throughout the year. Iron ore prices rose quite significantly until the middle of the year but fell sharply again by the end of the year. Prices for coking coal and steel scrap were even weaker, Frank Harms with the world markets mainly going downhill over the course of the year. The valuations of the main alloying elements for stainless steels on the London Metal Exchange were particularly volatile and went through a rollercoaster ride. Nickel prices on the LME, for example, were below €10 per kg in January, rose to €16 per kg by
30
September and fluctuated around €12 per kg at the end of the year. Such developments cannot be planned. Price formation on the global market happens and is influenced by economic and trade policy factors.
... on the investment climate in oil & gas Over the year, crude oil prices hovered around the $55/barrel mark, with relatively minor fluctuations compared to previous years. Extremely low oil prices, such as at the beginning of 2016, lead to a reluctance to invest on the part of the energy industry. Back then, this resulted in lower exploration and drilling activities, particularly in the fracking industry in North America, with correspondingly weak demand for steel tubes and flanges. However, the efficiency of the fracking industry in North America has in-
March 2020 / MPT International
Sources: WV Stahlrohre
AUTHOR: Frank Harms, WV Stahlrohre
