U.S. Cold Drawn Seamless Steel Pipes Market (2022-2029)

The increasing demand for seamless pipes in the oil & gas sector is the key factor driving the growth of the U.S. cold drawn seamless steel pipes market. However, the volatile raw material prices and lower demand in saturated markets are expected to restrain the growth of this market.

Increased offshore spending and new oilfield discoveries are expected to create significant growth opportunities for the players operating in the U.S. cold drawn seamless steel pipes market. Trade protectionism and the introduction of new substitutes pose serious challenges to the growth of this market.

The outbreak of the COVID-19 pandemic severely affected numerous businesses across the globe. Several industries were negatively impacted due to the disruption of supply chains and workforce limitations caused by the nationwide lockdowns. Closure of factories and trade restrictions also added to the existing challenges, severely impacting various industries. Manufacturing plants were shut down, affecting production, which led to a significant demand-supply gap. Infrastructure & construction industries in the U.S. witnessed acute labor shortages, suspension & cancellation of projects, and disrupted supply and logistics.

According to a national survey conducted by the Associated General Contractors of America in October 2020, of 1,077 respondents, 840 (78%) contractors confirmed project delays or disruptions, which reduced the demand for steel pipes in the construction industry. Furthermore, according to the U.S. Energy Information Administration’s (EIA’s) Monthly Energy Review, in 2020, total energy consumption in the U.S. fell to 93 quadrillion British thermal units (quads), a 7% decline from 2019. This decline in electricity demand affected the growth of the power generation industry.

Thus, the COVID-19 pandemic negatively impacted the U.S. cold drawn seamless steel pipes market due to diminished demand from the end-use industries. However, supportive government policies helped the U.S. steel industry recover from the significant economic and production losses. For instance, in March 2022, the U.S. and Japan agreed to expand coordination involving trade remedies and customs matters, monitor bilateral steel & aluminum trade, cooperate on addressing non-market excess capacity & carbon intensity in these sectors, and review their arrangement annually.

The U.S. is one of the leading producers and consumers of oil & gas globally. According to data from the U.S. EIA, as of March 2022, crude oil production in the U.S. stood at 11.7 million barrels/day. As per data from the U.S. EIA (2021), in 2020, the U.S. accounted for 20% of the total oil produced globally, whereas, in 2019, the country accounted for 20% of global oil consumption. The U.S. has moved from a distant third place in crude oil production to becoming the number one producer in less than a decade while also remaining the number one consumer of petroleum. The U.S. is also the leading producer, importer, and exporter of refined petroleum products. In addition, the country’s share in global natural gas production is higher than any other country. The U.S. is also likely to become one of the top three exporters of liquefied natural gas in the future.

The high growth of the oil & gas sector in the U.S. drives the demand for cold drawn seamless steel pipes due to their widening applications, including pumps, barrels, plungers, and bearing races. The International Energy Agency (IEA) estimates that by 2024, the U.S. will surpass Russia and move closer to Saudi Arabia in terms of oil export. The IEA also estimates that under the stated policies, 85% of the increase in global oil production over the next decade will come from the U.S. The growth in the oil & gas sector is expected to boost the demand for seamless steel pipes, driving the cold drawn seamless steel pipes market in the U.S.