API Steel Sector positive despite Global Volatility
Respondents from the European Parliament working in the API line pipe sector maintained a positive outlook for the first quarter of 2026, despite delays in project implementation and significant volatility in the oil and gas sector.
The military actions of the United States and Israel in Iran and the subsequent closure of the Strait of Hormuz led to an unprecedented disruption in oil and gas supplies to the Middle East. The subsequent reduction in gas and oil supplies significantly contributed to the increase in Brent crude oil prices in the first three months of this year. Prices rose from a low of $59 per barrel in January to over $112 per barrel on March 20, and then declined to about $94 per barrel at the time of writing this report.
This has led to renewed uncertainty in various industries, especially regarding investments in new pipeline construction projects. Investors are showing increased caution, delaying the fulfillment of obligations due to rising costs and the possibility of price adjustments in the future. In Europe, delays in the implementation of projects are mainly related to budget constraints. In the Middle East, many projects are still suspended due to the ongoing regional conflict.
Projects in the USA are being successfully implemented, API prices in Europe are rising
. On the contrary, MEPS research partners say that project activity in the United States remains particularly active. Higher oil prices combined with supportive government policies are driving growth. The order portfolios of American linear pipe manufacturers are full, which creates opportunities for foreign suppliers to supply the US market, despite the application of 50% import duties under Section 232.
In the first three months of 2026, sales of hot rolled X60/X65 sheet increased in Europe. Import offers from Asian API plants are uncompetitive due to CBAM taxes and unstable transportation costs related to the conflict in the Middle East. Shipments from European API plants remain at a good level, but are expected to decline in the second half of the year as orders are finally placed for some previously postponed major pipe production projects. Meanwhile, European suppliers of API hot-rolled steel have successfully increased their prices based on costs, partly reflecting rising energy costs.
In Asia, prices for hot-rolled X60/X65 sheet remain stable compared to the previous quarter, and delivery times remain short, ranging from four to eight weeks. Asian API manufacturers continue to prioritize sales in the U.
S. market, where the cost of sales is high.