International, regional and local factors are impacting global tube & pipe markets - some positively and others negatively. In a global overview, Fastmarkets research analyst Kim Leppold identifies the key trends.
The extended Chinese New Year holiday in reaction to the novel coronavirus (201-nCoV) outbreak resulted in a steep decline in steel prices in China in the first quarter, but pipe prices were not as strongly affected at time of writing, with just modest declines, if any, recorded. However, few transactions were made after the Chinese New Year, so it is likely that further discounting will take place in the pipe markets from Chinese producers as they look to maintain cash flow.Nevertheless, it is the view of Fastmarkets research that the hit to the Chinese economy from the coronavirus will be short in duration, but also that there will be ripple effects across the global energy markets due to the drop in oil and gas consumption causing supply overhangs to build further. Indeed, first-quarter 2020 global petroleum and liquids demand is forecast to decline from the previous quarter - the...