Americas Steel Pipes Market

Replacement of Aging Pipelines

Steel pipes are popular owing to superior reliability in performance and durability, coupled with a wide range of applications in the automotive, construction, and mining industries. Also, the wide range of steel pipes, particularly for oil and gas logistics, will help long term projections.

Further, the issues of corrosion in carbon steel pipes and the resultant requirements of replacements for aging pipelines will aid market growth by boosting residential and non-residential applications.

Also, further benefits such as hardness, temperature resistance, ductility, aesthetics, and lower costs of maintenance will support the market in the long term.

ERW Pipes Gain Prominence

ERW (electric resistance welded) steel pipes have been gaining prominence across the Americas owing to new opportunities in local markets, with an emphasis on infrastructure in urban settings.

Major investments being made for buses, air travel, and rail in addition to telecommunication and energy are likely to generate major opportunities for market players.

Manufacturers are focusing on geographical and capacity expansions. Also, the demand in commercial and housing spaces has resulted in increased demand in ERW pipes. Furthermore, favorable policies by governments towards gas and energy distribution will prove beneficial in market developments.

Key Challenges

While the Americas steel pipes market is projected to grow steadily albeit at a slow rate through 2030, steel pipe manufacturers are expected face obstacles that will restrain the potential of growth in the long term.

For instance, the high costs of installation associated with steel pipes hinder adoption rates. In addition, the Americas steel pipes market will witness strong competition from alternative pipe materials such as plastic and iron, owing to cost advantages.

 Steel pipe diameters are limited owing to major cost increases for larger sizes, which in turn limits the scope of application for offerings developed by manufacturers.

Region-wise Insights

United States Steel Pipes Market

 The United States market for steel pipes is remain lucrative, and is anticipated to account for more than 70% of the overall market share.

Sustained economic growth in the country, supported by fiscal stimulus by the government, and the resultant increase in business confidence has played a key role in demand for steel pipes in a number of end use sectors.

Also, the United States has witnessed a substantial increase in crude oil production which has provided market players with lucrative opportunities to leverage for revenue.

The US market has witnessed significant highs and lows in the past few years, with significant growth between 2017 and 2018, with key emphasis on applications in the oil and gas sector.

However, the coronavirus pandemic has resulted in major declines in the demand for oil prices, which is projected to hurt short term prospects. However, the sector is likely to witness gradual recovery through 2021 as industrial restrictions are relaxed.

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Brazil Steel Pipes Market

Brazil has been reflecting strong economic activity, albeit at a relatively slow pace. Industrial growth in the country, coupled with growing consumer prices in the region have been driving the market in the recent past. However, regional economic uncertainties across Latin America have affected steel production.

Also, Brazil has been witnessing a slump in terms of imports, owing to fluctuations in the requirements of finished steel products, while production of crude steel remains fairly stable.

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Key challenges for market players in Brazil include the continuing trade tensions between China and the United States, tight economic conditions, and reduced commodity prices.

In Latin America, Brazil is the only country that has managed to maintain a surplus of trade in terms of finished steel, with the country accounting for more than 50% of market share in the region.

Also, favorable government policies in the country will help in reducing inflation and will aid better monetary environment. The industry is likely to reflect growth through the forecast period owing to better business confidence in industrial and construction sectors through 2021.

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Canada Steel Pipes Market

The demand for steel pipes in Canada is notable owing to higher value in comparison to many Latin American countries. However, the country has been facing challenges in terms of significant slumps of prices in terms of crude oil, and the steady decline of demand from the energy industry.

In addition, fluctuations in the prices of steel have challenged market players in terms of sales. The market is likely to reflect a steady but sluggish growth through 2030, on the back of growing steel prices and a trend of depreciation of the Canadian dollar.

Growth will also be driven by increasing activity in domestic oil and gas drilling, coupled with revenue generation from irrigation and water supply applications for residential and commercial infrastructure development

According to government statistics the deficit between imports and exports are anticipated to steadily shrink in years to come, with 2019 valuations accounting for approximately 1.2 and 1.4 billion respectively, aiding steady growth in the years ahead.

Category-wise Insights

Demand for Carbon Steel Pipes Remains High

Steel pipes are largely manufactured from 3 key materials – carbon steel, alloy steel, and stainless steel. Carbon steel pipes are projected to remain highly sought after in the Americas throughout the projection period, with carbon steel market likely to grow steadily.

The demand for carbon steel pipes can be attributed to beneficial physical and chemical attributes including resistance to corrosion shocks, low environmental impact, and minimal need for pretreatment prior to use.

Preference Towards Seamless Steel Pipe Designs

Steel pipes can be categorize into seamless and welded variants. Welded steel pipes can be further segregated into ERW and SAW options. Seamless pipes are projected to hold major market share throughout the forecast period.

The demand for seamless pipes in the industry can be largely attributed to higher pressure and strength ratings and better uniformity in design, which makes it ideal for heavy duty applications such as those of the oil & gas sector, and water supply infrastructure, generating lucrative opportunities in the long term.

Application in Oil & Gas Creating Opportunities

The use of steel pipes for in wide temperature range and for the transport of toxic substances, coupled with the characteristics of weldability, high strength, low corrosion, and high tensile strength are important for onshore and offshore operations, generating lucrative opportunities for the long term.

Competitive Landscape

Steel pipe manufacturers in the Americas have been substantially impacted by the coronavirus pandemic. Consequently, market players are increasingly investing efforts in optimizing production, to match the decline in demand with reduction in production capacities and workforce gaining importance. Larger manufacturers are also investing in consolidating their presence during this period through strategic acquisitions.

ArcelorMittal has divested its U.S. assets, through a sale to Cleveland Cliffs Inc. for a valuation of approximately 1.4 billion, as steel manufacturers seek to diversify and consolidate their market presence.

The company has also revealed plans to unveil a new facility for electric arc furnace at its operations in Calvert, Alabama including hot dip galvanizing lines.

Tenaris has announced its intentions to scale back operations at the company’s melt facilities across the United States, owing to the sharp decline in the pricing of oil, and the resultant layoffs and idling of equipment including facilities in Koppel and Ambridge. The company has also announced the acquisition of IPSCO Tubulars, a major pipe manufacturer based in Houston for a value of around 1.1 billion.

Gerdau S/A has announced the reopening of operations at its Ouro Branco plant located in South Eastern Brazil at Minas Gerias which will add a capacity of 1.5 mt annually.

The company has also partnered with SKF towards optimizing productivity and cutting down downtime at the company’s Brazilian facilities. On the other hand, the plant in Saint Paul will witness substantial downsizing, owing to idling of operations in the facility.

Aside from these manufacturers, other major market players in the industry include:

• American Cast Iron Pipe Company
• Baosteel Group Corporation
• Evraz Plc
• Nippon Steel & Sumitomo Metal Corporation
• JFE Holdings Corporation
• Hyundai Steel Company
• TMK Group
• United States Steel
• Tata Iron and Steel
• VALLOUREC
• Nucor Corporation
• Zekelman Industries

The list is only indicative – full list of Americas steel pipes market key players is available upon request.

Americas Steel Pipes Industry Report: Scope

Key Questions Answered by the Report

• What is the size of the Americas steel pipes market?

  The Americas steel pipes market reached a valuation of US$ 20.5 billion in 2019. The sector is projected to rise at a moderate 3.3% CAGR between 2020 and 2030.

• Which is the dominant market for steel pipes in the Americas?

  The United States is the leading market for steel pipes in the Americas. Major investments being made in the natural gas and shale sectors are major influencers.

• Which are the prominent companies in Americas steel pipes market?

  Some of the top companies participating in the market are Arcelor Mittal, Tenaris, Gerdau S/A, American Cast Iron Pipe Company, Baosteel Group Corporation, Evraz plc, and Nippon Steel & Sumitomo Metal Corporation among others.

• What is the scope of steel pipe applications in the region?

  In the Americas, steel pipes are largely being used in commercial and industrial infrastructure development, for water supply and oil & gas exploration and transport projects.

• In what materials are steel pipes manufactured?

  Steel pipes is primarily available in three types. These include carbon steel, alloy steel, and stainless steel. Of these, carbon steel is reflecting higher sales, accounting for over 46% of market share through 2030.

• What is the outlook on Americas steel pipes market?

  Steel pipe manufacturers in the Americas will leverage potential applications in civil and industrial infrastructure development projects, particularly in the United States. However, competition from alternative materials are likely to create challenges through the assessment period.

• What are the Prospects of the OCTG Industry?

  The Oil Country Tubular Goods industry will remain a major contributor to the Americas steel pipes market, with onshore and offshore applications for components such as couplings, casing pipes, and tubing pipes.

Enquiry before Buying

• Is this research conducted by Future Market Insights?

  Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

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Key Segments

Material type

• Carbon Steel
• Alloy Steel
• Stainless Steel

End Use

• Construction
  • Residential & Commercial
  • Civic Infrastructure
• Mining
• Municipal Water Supply and Treatment Utilities
• Industrial
  • Automotive
  • Chemicals & Petrochemicals
  • Oil & Gas Pipelines
  • Power Generation
  • Others (textile, pharmaceuticals)

Design

• Seamless
• Welded
  • SAW
  • ERW

Country

• Brazil
• Argentina
• Mexico
• Canada
• U.S.