The Steel Tubing Distributor and Your Supply Chain

Steel tubing is specified by its outside diameter, unlike steel piping, which is specified by its inside diameter. Steel tubing is used in a huge range of industries, from processing industries, to structural industries and even consumer products. Round and square tubing are used in structural applications, for structures like catwalks and platforms, for transport of liquids or gas, and for products like vehicle exhaust systems.

Process Industries and Steel Tubing Demand

Process industries include pharmaceuticals, biotech, dairy, chemical, food, and beverages. Water treatment facilities are also process facilities that depend on access to a steel tubing distributor for construction, expansion, and repair needs. Stainless steel alloys offer the process industries resistance to corrosion, chemical and thermal stability, and cost effectiveness. The steel distributor plays a critical role in building these industries and keeping them productive.

The Steel Distributor over the Next Five Years

Despite experiencing fluctuations in demand up through 2010 or 2011, steel distribution is expected to see increased demand over the next few years. Sustained construction growth and increased exploration for petroleum products are main contributors to this growth. Revenues in the steel distribution sector are expected to experience annual growth of around 1.8% per year through 2017.

Upstream and Downstream Steel Tubing Demands

Steel tubing demand comes from a variety of upstream and downstream industries, and is affected by rig counts in the oil and gas industries, construction of gas and water transmission lines, and general economic conditions. Suppliers are learning the best ways to replenish inventories, as well as how to make better forecasts of demand so as to meet it without creating huge inventory backlogs.

Factors Affecting Steel Tubing Costs

The costs associated with steel tubing distribution are affected by numerous factors. The cost of the steel itself is influential, as are labor costs and the costs associated with electricity and natural gas used by the steel tubing manufacturing industry. The steel distribution industry is seeing a trend toward just-in-time inventory systems as steel tubing consumers demand this type of inventory method. International markets and import and export competition is also a factor expected to affect steel suppliers over the next decade.