Outlook Remains Sunny for Stainless Steel Pipe & Tube Demand
Welcome to Diamond Brite Metals second installment of its market analysis and forecast. Every week, Diamond Brite Metals’ management will be distilling and analyzing the latest news and trends in the metals market. Stay tuned for hard-hitting examination of every step of the metals supply chain.
The Trump Administration—regardless of your political predilections—has been a boon for the metals market. Section 232 (the tariffs imported on stainless steel) created domestic demand that was filled by the mills and service centers. The Trump Administration’s sweeping tax reform allowed companies and Original Equipment Manufacturers (“OEMS”) to approve large-scale projects that necessitated copious amounts of capital. Taken together, these trends in 2017 and 2018 spurred the unprecedented growth of the metals market. It is easy to dismiss this growth as a simple burst on the heels of business-friendly legislation in Washington. But, independent market research forecasts continued growth in domestic demand for stainless steel; specifically, stainless steel pipe and tube.
According to QYR Research, the global demand for stainless steel pipe and tube in 2018 was 32400 million US$ and by 2025 the global demand for stainless steel pipe and tube will be 42800 million US$. An increase of approximately 32%. In the United States, domestic growth mirrors global growth with a domestic demand for stainless steel pipe and tube in 2018 of approximately 2916 million US$ and predicted growth of 3849 million US$ by 2025. The domestic demand for polished stainless steel pipe and tube was approximately 146 million US$ with forecasted increases to 192 million US$ by 2025. In other words, the good times for mills, service centers, and polishing companies, such as Diamond Brite Metals, should continue.
The predicted increase in demand for stainless steel pipe and tube is contingent on expected increases in end-use industries. Oil & gas, water & wastewater, food & beverage, petrochemical and dairy industries (i.e. the industries that rely on stainless steel pipe and tube) will continue to grow over the next six years. As companies in these industries allot funds for capital expenditures and other large-scale projects, the demand for polished stainless steel pipe and tube will also increase. Polished stainless steel round tube and pipe are utilized for regulatory compliance and increase flow-through rates. Polished stainless steel tubing—either rectangular or square tubing—is used in structural capacities such as the building of cleanroom environments and other sanitary designs or where aesthetics are important.
Diamond Brite Metals has the ability to polish any size pipe or tube. Diamond Brite Metals routinely polishes rectangular and square tubes when architectural polishing is needed. One of Diamond Brite Metals unique capabilities is the polishing of the Inner-Diameter (ID) on pipe and tube. The oil & gas and pharmaceutical industries rely on Diamond Brite Metals to produce all industry finishes (#4-#8 mirror) on the ID of all size pipe and round tube.
Our polishing capabilities are unparalleled and we welcome any and all inquiries, regardless of size. For an RFQ, please contact our Sales Department at Sales@diamondbritemetals.com.