Stainless Steel Welded Pipe Market

What is the Future Outlook of the Stainless Steel Welded Pipe Market in Comparison to Historic Sales?

The construction sector and automotive sector are considered to the key end users of stainless steel welded pipes. Demand for stainless steel welded pipes is growing in the drinking water distribution industry due to their strength, corrosion resistance, ductility, and mechanical properties. Be it less corrosive groundwater or highly corrosive seawater, stainless steel welded pipes of various grades offer strong resistance to the same. Stainless steel welded pipes also offer smooth surfaces, which reduce particle adherence and enable easy removal of the applied coatings when they deteriorate. This factor drives the use of stainless steel welded pipes in water supply and distribution and also in other fluid-related applications.

According to FMI’s analysis, stainless steel welded pipe sales have grown at 1.2% CAGR between 2016 and 2021. COVID-19 has caused a major disruption in all manufacturing industries in terms of production output and supply across various regions. The annual growth rate of stainless steel and derived products including stainless steel welded pipes has also been dented by the pandemic.  Slowdown in the sales of non-essential items and liquidity tightening caused due to the covid-19 pandemic has caused a severe impact on the stainless steel welded pipe market.

The COVID-19 pandemic has caused a severe impact on the global economy at various levels and the impact is seen on the construction industry and automotive industry as well. The stainless steel welded pipe market’s growth plunged in 2020 as a result of various restrictions imposed to contain the spread of the virus. With a number of end users affected in regions such as East Asia and South Asia Pacific, the supply and shortage in demand are expected to result in a significant drop in Y-O-Y growth, yet FMI expects the global stainless steel welded pipe market to grow at a 4.6% CAGR through 2031.

What is the Commercial Potential of Stainless Steel Welded Pipes?

Stainless steel welded pipes are mostly used for different applications including construction, automotive, water supply and distribution, oil and gas, petrochemical and fertilizers, power generation and others.

Competitive price offerings, increase in end user satisfaction with respect to the properties of the material and also the enhanced strength within stainless steel welded pipes are the end results of R&D activities. Increasing research and development activities through collaboration or partnerships on projects are helping manufacturers in the market.

Moreover, establishing sales and service facilities in emerging countries, coupled with long-term partnerships with regional distributors, also paves the way for the expansion of channel reach.

Country-wise Insights

Will Growing Automotive Industry Propel the U.S. Market Growth?

The U.S. stainless steel welded pipe market is expected to rise at 4.4% CAGR between 2021 and 2031. Growth forecast for the U.S. market remains positive on account of the increasing demand from the automotive industry and construction industry. The U.S. automotive industry not only produces vehicles for domestic sales, but also exports vehicles, and to fulfill the demand auto industry players have to manufacture efficiently. Stainless steel welded pipes are used for making mufflers and exhausts in the automotive industry, which propels the growth of the stainless steel welded pipe market in the United States.

How is Germany relevant to the Stainless Steel Welded Pipe market?

After a brief period of declining growth in 2020, the Germany market is expected to register 4.3% y-o-y growth in 2021. The Germany stainless steel welded pipe market will witness appreciable growth on account of the increasing demand from the automotive and aerospace industries. Germany comes under the tag of top 10 steel producing countries with the market volume of 39.7 Million Tons in 2019. Stainless steel which is made in Germany is also very popular in sales due to lower carbon content, and are softer which make them more durable then American grade of Stainless Steel.

What is the Demand Scenario for Stainless Steel Welded Pipes in India?

India has emerged as a key market, accounting for a little over 30% of stainless steel welded pipes sold in South Asia Pacific in 2021. In India, 36-60 mm and 61-150 mm segments are used, the former being preferable in water supply and distribution applications and the latter in the oil and gas segment. The demand from power generation applications is also expected to propel the market growth in India. Also, in January 2021, the Ministry of Steel, Government of India, signed a Memorandum of Cooperation (MoC) with the Ministry of Economy, Trade and Industry, Government of Japan, to boost the steel sector through joint activities under the framework of India - Japan Steel Dialogue. Such government initiatives are expected to bode well for the market.

How has Japan positioned itself in Stainless Steel Welded Pipe Market Trade?

The demand in Japan is expected to accelerate in 5.2% CAGR between 2021 and 2031. Most stainless steel welded pipe manufacturers are from East Asia, and comprise some of the key players from Japan. Japan alone accounts for US$ 3,288,000 worth of exports of stainless steel welded pipes. Japan Stainless Steel Association and AICHI Steel Corporation are coming together and making more composite for the stainless steel for other applications as well such as; reinforced concrete construction for which they provide chromium stainless steel welded pipe for concrete reinforcement.

Growing demand for oil will drive stainless steel welded pipe market in GCC countries

The high volumes of oil and natural gas reservoirs in GCC countries, especially Saudi Arabia, the UAE, Qatar, and Kuwait, have led to the expansion of oil and gas infrastructure in the region. This has led to growing demand for stainless steel welded pipes. As Nickel Alloy Grade Duplex 2207 and Duplex 2205 is mostly used in the oil and gas industry for the easily transportation of the fluid. Nickel Alloy Grade is mostly used due to the property of corrosion resistance from any kind of fluid.

Category-wise Insights

Which is the Key Application of Stainless Steel Welded Pipes?

The market share of construction application is higher as compared to other applications. The construction application accounts for over 27% of the total market share. This is followed by the automotive application, which has a share of over 23%.

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Which Is The Preferred Grade Of Stainless Steel Welded Pipes?

300 series grade is the most preferred type of stainless steel welded pipes, holding a 70-75% share in the global market. The most preferred sub-segments in the 300 series which have the highest growth and are more used are 304, 304L & 304H, which comprise more than 60% of the global market, and 316, 316L, 316H & 316TI, which hold over 20% of the global market.

What Is The Preferred Outer Diameter In Stainless Steel Welded Pipes?

36-60 mm and 61-150 mm outer diameter segments are the most preferred in the stainless steel welded pipe market due to their increasing use in water supply and distribution and also in petrochemical and fertilizer applications, which require different types of outer diameters as per the work requirement.

Competitive Landscape

The stainless steel welded pipe market is highly competitive, with the presence of a large number of players in the market. Some of the players are focusing on carving out a niche for specific consumers. The market has robust partnerships throughout the value chain, with high focus on innovations. Manufacturers are aiming at strategic collaborations with end users and regional distributors to address the requirements of an expanding customer base. Brand consciousness and aggressive marketing make it challenging for new entrants in this market. Through these developments, companies are aiming at gaining a competitive advantage.

Some of the leading companies operating in the market are:

• Marcegaglia
• Sosta GmbH & Co. KG
• ArcelorMittal S.A.
• Nippon Steel
• Hyundai Steel Co., Ltd
• Sandvik AB
• Shanghai Metal Corporation
• FROCH ENTERPRISE CO., LTD.
• F.E.R. Fischer Edelstahlrohre GmbH
• YC Inox
• JFE Steel Corporation
• CSM TUBE spa
• Guangzhou Pearl River Petroleum Steel Pipe Co., Ltd.
• Guangdong Lizz Steel Pipe Co, Ltd.
• Foshan Zhongde Stainless Steel Co., Ltd.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Key Questions Answered in the Report

• Which is the most lucrative market for Stainless Steel Welded Pipes?

  East Asia currently leads the global market for stainless steel welded pipes. Sales in East Asia will account for over 20% of total demand throughout the forecast period.

• Which are the top-selling Stainless Steel Welded Pipes?

  300 series pipes are highly sought after in many applications. The demand for 300 series grade SSWP is expected to remain high in the near future, especially due to the continuously increasing demand for 304, 304L & 304H type of SSWP with high corrosion resistance and good mechanical properties.

• Which is the most lucrative application for Stainless Steel Welded Pipes?

  Stainless steel welded pipes are widely used in construction applicationsThey also have stable growth prospects in automotive applications, as well as in water supply and distribution.

• Which are some of the leading Stainless Steel Welded Pipe manufacturers?

  Some of the leading companies manufacturing stainless steel welded pipes are Marcegaglia, Sosta GmbH & Co. KG, ArcelorMittal S.A., Nippon Steel, Hyundai Steel Co., Ltd, Sandvik AB, Shanghai Metal Corporation, FROCH ENTERPRISE CO., LTD., F.E.R. Fischer Edelstahlrohre GmbH, YC Inox, JFE Steel Corporation, CSM TUBE spa, Guangzhou Pearl River Petroleum Steel Pipe Co., Ltd., Guangdong Lizz Steel Pipe Co, Ltd., Foshan Zhongde Stainless Steel Co., Ltd., and others.

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• Is this research conducted by FMI?

  Yes, the research has been conducted by expert analysts of FMI 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. Request detailed methodology

• 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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Stainless Steel Welded Pipe Market

By Grade

• 300 Series
  • 304, 304L & 304H
  • 309 & 310S
  • 316, 316L, 316H, 316TI
  • 321/321H
  • 347/347H
• 400 Series
  • 409
  • 410/410S
• 900 Series
• Nickel Alloy Grade
  • Duplex 2205
  • Duplex 2207

By Application

• Construction
• Automotive
• Water Supply and Distribution
• Oil and Gas
• Petrochemical and Fertilizers
• Power Generation
• Others

By Outer Diameter

• 4 – 36mm
• 36 – 60 mm
• 61 – 150 mm
• 151 – 500 mm
• 500 – 1000 mm

By Region

• North  America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa