The pipe sector has recorded its fifth consecutive quarterly decline, with recovery expected only in 2026

The EU steel pipe sector remains at risk. According to the EUROFER Economic and Steel Market Outlook Q3 report, pipe production fell by 3% year-on-year in Q1 2025. This was the fifth consecutive quarter of decline after a 1.8% drop in Q4 2024.

The industry lost momentum in the second half of 2022, when the market was affected by the war in Ukraine, supply disruptions, and sharp fluctuations in energy prices. Despite lower gas and oil prices in 2023-2024, uncertainty about energy markets and weak global economic prospects continue to weigh on the sector. Investment in pipeline projects remains low as the EU accelerates its shift away from pipeline gas in favor of LNG shipments.

In 2023, pipe production fell by 1.3% y/y, and in 2024 by another 2.5% y/y. Only minimal growth (+0.1% y/y) is expected at the end of 2025, while a more significant recovery is possible no earlier than 2026 (+0.7%). Even if this scenario materializes, volumes will remain significantly lower than before the pandemic and the onset of the energy crisis.

The industry’s prospects will be determined primarily by developments in construction and mechanical engineering, which are important consumers of pipes. Demand from the oil and gas sector is unlikely to grow, as global energy companies are postponing new projects amid geopolitical instability.

Thus, the EU pipe sector is in a state of limbo. Investors and manufacturers are counting on a recovery only in the second half of 2026, while 2025 will be marked by stagnation and high uncertainty.

It should be recalled that in the first quarter of 2025, the European Union’s steel market showed mixed dynamics. Real steel consumption declined for the eleventh consecutive quarter, by 5.5% y/y. At the same time, apparent consumption grew by 2.2% y/y.