U.S. Pipeline Operators Concerned About Sourcing Enough Line Pipe
Line pipe operators in the United States are having some concerns about the availability of large-diameter line pipe since a significant increase in demand for the product has been noted. According to Metal Bulletin Research (MBR), a leading provider of market analysis involving both the metal and mining industries, there has been a clear spike in sources trying to secure line pipe – especially on the East Coast, in the Southwest, and in North and South Dakota.
From 2013 up until this recent increase, activity in the market had been continuing at a slow rate – marking one of the slowest years steel mills have seen. However in 2015 those who utilize large-diameter line pipe are worrying about where the next steel products for their projects will be coming from. This year may not be the only year when the line pipe is in short supply. MBR is predicting shortages in mills’ inventories as projects for 2016 are already being booked.
A demand of the caliber has not been seen in the U.S. for several years leading to line pipe operators considering outsourcing the product from Europe and Turkey. While the number of large-diameter line pipe imported into North America was low at the end of 2014, it is expected to ramp up throughout the rest of 2015.