As natural gas and oil pipelines continue to emerge around the US, so will the demand for steel piping.
In a report from Platts.com, gas mainline networks are set to grow by 667 miles in 2013, over twice as much completed in 2012, the article stated.
Overall, the growth forecast in the steel pipe market is expected to be around the same growth as other industries like construction, automotive and appliances. The range in the steel shipments to the oil and gas industry range from 2-8 percent, while construction growth is estimated at 1-5 percent, automotive at 1-4 percent, and appliances at 1-6 percent.
Playing a role in this is the oil industry as they expand on methods in drilling to unlock shale formations. The Energy market makes up 7 percent of all US steel shipments, the AISI said, but steel pipe and tubular goods make up over 50 percent of those shipments.
The article went on to say that US Steel, which is America’s largest tubular producer, said 84 percent of its tube products went to energy-based suppliers and developers in 2012 and 2011.
It certainly appears the strongest markets for tubular steel products will continue to be the energy markets as pipelines continue to be built and new ways to extract the raw materials are continually being developed.