Mea And Australia Steel Pipe Market

MEA And Australia Steel Pipe Market; By Type (Welded Pipe, Seamless Pipe), By Application (Water, Oil& Gas, Chemical, Others), By Region (the Middle East & Africa and Australia)Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: August 2021
  • Report ID: BWC2137
  • Available Format: PDF
  • Page: 121

Report Overview

The MEA & Australia steel pipe market is anticipated to grow due to the thriving oil and gas industry in MEA, coupled with the booming shipment industry.

The MEA & Australia steel pipe market was USD 29,215.0 million in 2020 which is anticipated to reach the valuation of USD 38,719.4 million by 2027 growing at a CAGR of 4.5%duringthe forecast period. The growth of the MEA & Australia steel pipe market is mostly due to the increased use of seamless pipes in the oil and gas industry, where they perform immaculately at high pressures and temperatures. In the Middle East region, the seamless pipes market is expected to remain dominant due to the new developments taking place in the oil & gas industry and oil & gas drilling.

MEA & Australia Steel Pipe Market

Source: BlueWeave Consulting

The MEA & Australia Steel Pipe Market Overview

Steel pipes are cylindrical tubes made from steel that are used in a wide range of manufacturing and infrastructure applications. Steel pipes are the most utilized product manufactured by the steel industry. These are primarily used to transport liquids and gases underground, including oil, gas, and water. The production of steel takes place when the iron is added to carbon at a certain temperature. There are four processes for manufacturing steel pipes:

•        ERW- Electric Resistance Welding

•        EFW- Electric Fusion Welding

•        HFW- High-frequency welding

•        SAW- Submerged Arc Welding (Long seam & Spiral Seam)

The welded steel pipe is a pipe that has steel pipe joints and is used for bending steel belts or steel plates into round, square, or any other shape, and then to weld them into their final form. The seamless pipe is made from round steel billets. After being heated, the billet is stretched, pushed, and pulled over. The pipe is pierced through the center with a die using a mandrel machine, resulting in an increase in length and inside diameter of the pipe. Seamless pipes are widely used in a variety of industries, such as process piping, pressure vessels, chemical industries, and construction.

The MEA & AustraliaSteel Pipe Market Trends

Growth Drivers

The Booming Oil and Gas Industry in MEA Steel Pipe Market

The oil & gas industry is the world's largest industry in terms of revenue. Moreover, the oil & gas industry in MEA is also the world’s largest industry in terms of revenue. Most of the major players in the world have plants in the MEA. MEA's oil and gas industries contribute significantly to the country's GDP (gross domestic product). According to the Organisation of Petroleum Exporting Countries, Saudi Arabia controls approximately 17% of the world's proven petroleum reserves. Approximately 50% of the GDP comes from the oil& gas industry. In Saudi Arabia, oil production per thousand barrels per day has increased substantially between 2010 and 2020. In 2010, Saudi Arabia produced 9865,000 barrels per day, which grew to 11039 thousand barrels per day in 2020. The rising oil & gas industry in the MEA region is the key factor driving the growth of the MEA & Australia steel pipes market.

Figure 1.  Production of Oil and Natural Gas in the Middle East (2010-2020)

MEA & Australia Steel Pipe Market Size

Source: BP Statistical Review of World Energy 2021

Restraints

The Increasing Price of Stainless Steel

Because steel is the most common and prominent material used globally, there are many subcategories of steel that are used globally for various purposes. Steel pipes are mainly influenced by the qualities and characteristics of the materials used to manufacture them. The type of steel to be used for a particular project should be chosen based on quality and cost. The price of stainless steel in the Kingdom of Saudi Arabia can vary from Saudi Riyal 77-770 per meter of stainless-steel pipe prices. Compared to the 5% monthly price increase seen at the end of 2020, the price hike for grade-304 stainless steel has risen by 15% since the beginning of the year, mostly due to increases in alloy surcharges and base prices.Thus, the increasing price of stainless-steel pipes is hampering the growth of the MEA & Australia steel pipes market.

Impact of Covid-19

The pandemic has caused the world an unexpected blow, and the death toll continues to rise withthe virus raising its ugly head across the globe.Construction stopped following a spike in infections in the early phases of the pandemic, which lowered the demand for steel pipes in MEA & Australia; however, once the first wave of infections had passed, governments responded by investing heavily in infrastructure to boost their economies. However, lockdowns and curfews were imposed once again, resulting in supply chain disruptions, labor shortages, financial losses, and a temporary negative impact on investments. One of the primary demand drivers for steel pipes is the oil and gas industry, which had to undergo the worst crisis ever, with oil prices plunging to USD 21.04 per barrel during the first wave of COVID-19.  As a result of a reduced production to maintain margins starting in February 2021, oil prices have risen above USD 60 per barrel, and demand is increasing steadily in response. However, as oil producers are unlikely to increase capital investments anytime soon, oil and gas demand for pipes will remain low for some time. As governments around the world refocus on infrastructure projects like water and sewage systems and oil pipeline networks, growth is likely to resume. According to Nippon Steel Corporation, their domestic steel demand has collapsed since April 2020, and the demand in the first half of fiscal 2020 is likely to be 24 million tons, down 20% year-on-year. In particular, demand from the manufacturing sector is expected to be 15 million tons, down 24% year-on-year. However, in 2020, the demand was projected to be at the lowest point in the first half and slightly recover to around 26 million tons in the second half, majorly in the manufacturing sector.

The MEA & Australia Steel Pipe Market- By Type

Based on types, the MEA & Australia steel pipe market is segmented into the welded pipe and seamless pipe segment. The welded pipe segment accounted for the largest market share in 2020 and is expected to grow at a lucrative CAGR during the forecast period. Moreover, the welded pipe segment is expected to continue its market dominance till 2027. The seamless pipe segment, on the other hand, holds the second-largest market share in the MEA & Australia steel pipe market. The growth of seamless pipes is mostly due to the increased use of seamless pipes in the oil and gas industry, where they perform well at high pressures and temperatures.

The MEA & Australia Steel Pipe Market- By Application

Based on applications, the MEA & Australia steel pipe market is segmented into water, oil & gas, chemical, and others based on application. The oil & gas segment accounted for the majority of market share in 2020 and is expected to grow at a significant CAGR during the forecast period. It is one of the largest industries in the globe. As global economies and infrastructure continue to rely significantly on petroleum-based products, the world's dependence on oil and gas is growing. Even with a weakening global economy and dwindling oil supplies, there is much more demand from the energy sector from emerging economies. In the MEA & Australia steel pipe market, the MEA accounts for the majority of stake in the oil & gas industry as Saudi Arabia holds a significant share in this industry.

The MEA & AustraliaSteel PipeMarket- Regional Insights

Based on the regional level, the MEA & Australia steel pipe market is segmented into MEA & Australia. The MEA region held the largest market share in 2020 and is anticipated to continue its supremacy in the coming years as well. Based on countries, the MEA steel pipe market is segmented into Turkey, Egypt, Saudi Arabia, South Africa, and the rest of MEA. Saudi Arabia accounted for the largest market share in 2020, The strong presence of the oil & gas industry in Saudi Arabia is mainly responsible for the high demand for steel pipes in the country. Moreover, the presence of global leaders such as Saudi Aramco, which is mostly state-owned, has accelerated the growth of the steel pipe industry in Saudi Arabia.

Competitive Landscape

The MEA & Australia steel pipemarket is highly competitive and fragmented and is composed of many large, small, and medium players. The key players dominating the market are ArcelorMittal, Tenaris Saudi Steel Pipes, Al Gharbia Pipe Co., Conares Metal Supply Ltd., Global Pipe Company, SeAH Steel, Steel Mains, TMK, Welspun MiddleEast, Arabian Pipes, National Pipe Company Ltd., Nippon Steel Corporation, JFE Holdings, Inc., Jindal Saw Ltd., Severstal, Vallourec, Evraz,Tata Steel, JSW Steel Limited, andother prominent players.

 

Arcelor Mittal is one of the biggest steel-producing companies around the world and has a production capacity of 600 K Tons. The company accounted for the largest market share of the Middle East and Africa and Australia Steel Pipe market in 2020. It is indicative that the company has a vast presence and global network to cater to the demand of the consumers or end-users.

 

Recent Developments

  • In May 2021, The Sustainable Management Promotion Organization(SuMPO) awarded Nippon Steel Corporation the “EcoLeaf” Ecolabel accreditation. This ISO 14025 accreditation was obtained for Nippon Steel's OCTG and Line Pipe products, which are designed to be used as steel pipes for energy extraction and transportation. These are the first steel pipe products manufactured in Japan to receive such certification.

 

  • In May 2021, JFE Steel Corporation announced the development of the first hot-continuous-rolling (endless-rolling) technique for high-tensile-strength steel sheets in the world (HITEN). Scalable mass production of high-tensile steel has already begun at JFE Steel's Chiba site, which is a part of the company’s East Japan Works.

 

Scope of the Report

Attribute

Details

Years Considered                                      

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Market Coverage

Turkey, Egypt, Saudi Arabia, South Africa, Australia

Product/Service Segmentation

By Type, By Application, By Country

Key Players

Key players in the market are ArcelorMittal, Tenaris Saudi Steel Pipes, Al Gharbia Pipe Co., Conares Metal Supply Ltd., Global Pipe Company, SeAH Steel, Steel Mains, TMK, Welspun MiddleEast, Arabian Pipes, National Pipe Company Ltd., Nippon Steel Corporation, JFE Holdings, Inc., Jindal Saw Ltd., Severstal, Vallourec, Evraz, Tata Steel, JSW Steel Limited

By Type

  • Welded Pipe
  • Seamless Pipe

By Application

  • Water
  • Oil & Gas
  • Chemical
  • Others

By Country

  • Turkey
  • Egypt
  • Saudi Arabia
  • South Africa
  • Australia

FAQs:

  1. What is the current size of the MEA & Australia Steel Pipemarket?

Answer: TheMEA & Australia steel pipemarket reached USD 29,215.0 Million in 2020 across the region.

  1. What are the major factors driving the growth of the MEA & Australia Steel Pipemarket?

Answer: Some of the key factors driving the growth of the MEA & Australia steel pipe market are the increasing demand from the rising shipment industry and the rising oil and gas industry in the MEA region.

  1. Who are the key players in the MEA & AustraliaSteel Pipemarket?

Answer: The key players in the MEA & Australiasteel pipe market are ArcelorMittal, Tenaris Saudi Steel Pipes, Al Gharbia Pipe Co., Conares Metal Supply Ltd., Global Pipe Company, SeAH Steel, Steel Mains, TMK, Welspun MiddleEast, Arabian Pipes, National Pipe Company Ltd., Nippon Steel Corporation, JFE Holdings, Inc., Jindal Saw Ltd., Severstal, Vallourec, Evraz, Tata Steel, JSW Steel Limited, andother prominent players.

  1. Which segment accounted for the largest share in the MEA & AustraliaSteel Pipemarket?

Answer: The welded steel pipe segment accounted for the largest share in the MEA & AustraliaSteel Pipemarket.

  1. Which region is growing at a higher rate in the MEA & AustraliaSteel Pipemarket?

Answer: The MEA region is growing at a higher rate in the MEA & AustraliaSteel Pipemarket.