Globally, many new oil and gas pipeline projects remain in the planning stages, with several due to be announced or expected to receive approval before 2030. This is despite the oil and gas industry's growing shift towards low-carbon alternatives. The current oil price supports continued investment in development.
Most pipe manufacturers reported a disappointing first half of 2024 in terms of confirmed orders, but the volume of inquiries from OEMs remains encouraging for future projects, especially those must be concluded in 2025 and later. MEPS respondents report a growing number of requests for carbon dioxide pipelines in the US, Canada, UK and other parts of Europe.
However, demand for API coils and plates was lower than expected in the first six months of this year .
European sheet mills in particular have seen far fewer orders than expected due to project delays, leaving capacity remaining available this year. Buyers report delivery times of six to seven weeks.
European X60/X65 hot-rolled plate prices fell between April and June, reaching what most MEPS sources consider the bottom of the current cycle. Although Asian import offers for API hot-rolled plates are comparable to European prices, high container costs and delivery delays make them less attractive to buyers.
In Asia, prices for X60/X65 hot-rolled sheets decreased slightly compared to the previous quarter, but remain at the level of European prices in euros. Several sheet manufacturers in the region are still offering September/October delivery dates for API material. API hot rolled coil prices also declined from the previous quarter.
