Recovering Oil Prices, E&P Investments & the Ensuing Pipeline Network Upgrades & Expansion Bodes Well for the Growth of Electric Resistance Welded Pipes and Tubes

Resurgence in the oil & gas sector and the healthy outlook for pipeline projects in addition to the growth in manufacturing and infrastructure development activity and the ensuing demand for high quality steel pipes are poised to drive the global market for Electric Resistance Welded (ERW) Pipes and Tubes to reach 95.4 million tons by 2024.

Electric Resistance Welded (ERW) pipes are strips of hot rolled steel that are transformed into rolls and later welded through the use of an electric charge. ERW pipes compete with seamless pipes in some applications because of lower costs involved in their production. Traditionally, ERW pipes were mainly used in oil and gas  pipelines, and water/sewage transportation. However, with improvement in load bearing strength, ERW pipes now find application in industries such as infrastructure, pre-fabricated structures, solar plants, power plants, and furniture. Globally, the ERW  steel pipes market continues to benefit from the favorable economic conditions.  Besides resurgence in construction and manufacturing sector, increase in oil prices and favorable investment scenario in the oil and gas sector, particularly in North America continue to drive gains in the ERW pipes sector.  With oil prices reaching levels supporting additional drilling activity, demand for OCTG pipes is expected to improve in the near term.

Demand is further expected to gain as the world oil and gas industry continues its shift from established traditional reserves to more expensive and complex oil and gas resources, such as shale, deepwater and pre-salt projects, and heavy oil, among others.  Demand for line pipes is driven by improving level of pipeline construction activity, replacement requirements of line pipe, utility purchasing programs, and new residential construction activity. Against the backdrop of increasing pipeline and operating pressure, and offshore drilling activity at greater depths, the demand for high strength ERW pipes is on rise for more efficient supply of oil, water, and gas. As raising the strength of the pipe allows for reduction in wall thickness and weight of the pipe, manufacturers continue to explore various methods to improve the strength and performance of pipeline steels.

As stated by the new market research report on Electric Resistance Welded Pipes, Asia-Pacific represents the largest market worldwide. The US represents the fastest growing market for ERW pipes and tubes, reflecting a CAGR of 8% over the analysis period. Growth in the market is primarily attributed to the recovery in E&P spending amid the nation’s exceptional emphasis on tapping the huge reserves of shale plays to meet the escalating demand for energy and to achieve energy security. In Asia Pacific, the market is expected to benefit mainly from increasing industrialization in the region, followed by rapid infrastructural growth.

Major players in the market include Al Jazeera Steel Products Company SAOG, Arabian Pipes Company, ArcelorMittal SA, ChelPipe, EVRAZ North America, JFE Steel Corporation, Maharashtra Seamless Limited, Nippon Steel & Sumitomo Metal Corporation, Northwest Pipe Company, PAO TMK, TMK IPSCO, PT Bakrie Pipe Industries, Salzgitter Mannesmann Line Pipe GmbH, Tata Steel Europe, Techint Group SpA, United States Steel Corporation, United Metallurgical Company /OMK, Welspun Corp Ltd., and Wheatland Tube Company, among others

The research report titled “Electric Resistance Welded Pipes and Tubes – Market Analysis, Trends, and Forecasts” 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 major geographic markets including 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 & Africa, and Latin America. The report is analyzed by applications namely Mechanical Steel Tubing, Structural Steel Pipes & Tubing, Pressure Tubing, Standard Pipes, Oil Country Tubular Goods, and Line Pipes.

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