EU Steel Pipe Production Falls Again Amid Ongoing Market Weakness

Steel Pipe Production in the EU Faces Prolonged Downturn

Steel pipe production in the EU continues to decline, with Q1 2025 marking the fifth consecutive quarterly drop, according to EUROFER’s latest Economic and Steel Market Outlook. Output fell by 3% year-on-year, following a 1.8% decline in Q4 2024. This persistent downturn signals a sector under sustained pressure, with only minimal recovery projected in the near term.

The industry began losing momentum in late 2022 as war in Ukraine, energy price shocks, and supply disruptions rattled the market. Even though energy prices stabilized in 2023 and 2024, broader economic weakness and uncertain energy policy continue to depress investment. Notably, the EU’s shift from pipeline gas to LNG has severely limited new pipeline projects, further weakening demand for steel pipes.

While EUROFER forecasts a marginal 0.1% rise in output by the end of 2025, a meaningful recovery may not occur before 2026, with an expected increase of just 0.7%. Even then, volumes will likely remain well below pre-pandemic levels, signaling a long path to recovery for EU pipe producers.

Pipe Sector Recovery Tied to Construction and Engineering Outlook

The future of EU steel pipe production will largely depend on trends in construction and mechanical engineering. These two sectors account for significant pipe consumption and have shown sluggish recovery. Meanwhile, the oil and gas industry—traditionally a major buyer—offers little support. Global energy firms continue delaying projects due to geopolitical instability and long-term energy transition strategies.

In 2023, EU pipe output fell by 1.3%, followed by a deeper 2.5% drop in 2024. Despite slight improvements forecast for 2025, weak fundamentals and investor hesitation suggest the downturn could persist longer. EUROFER’s data also highlights broader market strain: real steel consumption in the EU dropped 5.5% in Q1 2025, while apparent consumption rose by 2.2%, showing signs of decoupling in demand visibility.

Manufacturers and investors now see 2026 as the earliest point for potential recovery. Until then, uncertainty, overcapacity, and geopolitical risks will likely limit growth and pricing power across the EU pipe market.

SuperMetalPrice Commentary:

The EU steel pipe sector is clearly navigating a prolonged trough. The absence of strong end-use demand, particularly from energy infrastructure, underscores the structural shift underway. LNG, renewables, and digitalization of energy networks are transforming traditional pipeline steel markets. Unless the construction and engineering sectors rebound significantly, and energy investment returns, pipe production will remain subdued. For now, producers must focus on efficiency, diversification, and alignment with EU green policy frameworks to survive the slump.