July 2, 2026 – Industry Analysis for European and Global Buyers

As we enter the first month of the third quarter of 2026, the global seamless steel pipe, welded steel pipe, and structural hollow section market is building on the stable foundations laid in the first half of the year. The intense diplomatic activity of recent months, including high-level summits involving the US, Russia, and other nations, has created a backdrop of cautious optimism for trade. For European buyers, the focus now shifts to executing H2 procurement plans, navigating CBAM requirements, and securing EN-standard material supplies. This report provides a strategic update for the quarter ahead.

Diplomatic and Geopolitical Landscape: A New Baseline for Trade

The series of high-level meetings in Beijing has concluded, leaving a legacy of ongoing dialogue and potential policy adjustments.

US-China Relations: Dialogue Continues
Following the presidential summit, working-level discussions on trade frameworks, including the Section 232 tariff structure, are proceeding.

Tariff Review Status: Bilateral working groups continue their review. While no formal changes have been announced, the sustained communication is a positive indicator for future seamless steel pipe and welded steel pipe trade flows.

Trade Facilitation: Commitments to streamline documentation could reduce administrative lead times for cross-border shipments.

Russia-China Energy Cooperation
Agreements from President Putin's visit are translating into project planning.

Pipeline Development: New natural gas pipeline projects will drive future demand for large-diameter line pipe and API 5L X65/X70 seamless pipes.

Settlement Mechanisms: Expanded use of Ruble-Yuan settlement reduces currency conversion costs for bilateral transactions.

Middle East Tensions Stabilized

Strait of Hormuz: Maritime operations are near-normal, with minimal freight surcharges and transit delays for Gulf-bound cargoes.

Energy Prices: Oil has stabilized in the $63–$68/barrel range, reducing cost pressure on electric arc furnace steel production.

Q2 2026 Review: A Quarter of Stable Execution

The second quarter concluded with balanced market conditions, providing a solid base for H2.

Production and Supply

Mills across Asia operated at 75-80% capacity utilization with stable output of carbon steel pipes, alloy steel pipes, and stainless steel seamless pipes.

Lead times remained consistent: 30-40 days for ASTM A106 Grade B and API 5L B, 45-55 days for ASTM A335 alloy series and large-diameter seamless pipes.

For EN-standard materials, lead times generally ranged from 35-50 days depending on grade and certification requirements.

Exchange Rate Summary (as of July 2, 2026)

Currency Pair	Movement vs. 1 Month Ago	Implication for European Buyers
EUR/CNY	-0.3% (yuan slightly stronger)	Marginal increase in EUR cost
USD/CNY	-0.2% (yuan stable)	Stable USD cost
EUR/USD	-0.1% (euro stable)	Minor impact

Q3 2026 and H2 Outlook: Europe Focus

For European buyers, several key trends will define the procurement landscape in the coming months.

CBAM and Green Steel Regulations

Documentation Standard: Carbon footprint data packages—including green power certificates, scrap ratio verification, and batch-specific emissions reports—are now a standard requirement for compliance.

Verification Expectations: Third-party verification (e.g., ISO 14064, ISO 14067) is increasingly expected by European buyers and regulators.

Cost Implications: EU ETS carbon prices in the €70–€85/tonne range mean CBAM certificates remain a significant cost factor for higher-emission products.

EN Standard Material Demand
European projects continue to specify EN-standard materials. Key grades in demand include:

EN Standard	Grade	Typical Application	Equivalent ASTM
EN 10210-1	S355J2H	Hot-finished structural hollow sections	ASTM A500 Grade C
EN 10210-1	S275J2H	General structural applications	ASTM A500 Grade B
EN 10219-1	S355J2H	Cold-formed welded structural sections	ASTM A500 Grade C
EN 10219-1	S235JRH	Light structural, scaffolding	ASTM A36
EN 10216-2	P235GH TC1	Pressure purposes at elevated temperatures	ASTM A106 Grade B
EN 10216-2	P265GH TC1	Pressure vessels, boilers	ASTM A106 Grade C
EN 10217-2	P235GH	Welded pressure tubes	ASTM A135 Grade B

Low-Carbon and Green Steel Demand

EAF + Green Power: European buyers increasingly prioritize low-carbon seamless pipes from EAF mills with documented green power usage (30-50%) and high scrap ratios (20-25%).

Transparency: CBAM compliance is driving demand for transparent, verifiable product-level carbon footprint data.

Demand Outlook by Sector (H2 2026)

Sector	H2 Outlook	Key Products
Oil & Gas	Sustained, moderate growth	API 5L line pipe, OCTG, casing, tubing
Power Generation	Steady, maintenance-driven	EN 10216-2 P235GH/P265GH, ASTM A335 boiler tubes
Infrastructure (Europe)	Growing, green projects	EN 10210/EN 10219 S355J2H, square tubes, RHS
Infrastructure (Global)	Sustained	Large-diameter welded pipes, piling pipe
Renewable Energy	Emerging	Precision seamless tubes, mechanical tubing

Recent Industry News: Capacity and Standards

New EAF Low-Carbon Capacity: New electric arc furnace (EAF) seamless pipe lines have commenced production in China, adding significant annual low-carbon capacity focused on EN-standard materials.

CBAM Guidance Update: The European Commission has published additional technical guidance on carbon footprint verification.

EN Standards Revision: Updated versions of EN 10210 and EN 10219 have been published with minor technical adjustments.

Strategic Procurement Recommendations for European Buyers – Q3 2026

Given the current landscape, we recommend the following actions:

Specify EN Standards Early: Include EN 10210, EN 10219, or EN 10216-2 in your RFQs.

Request CBAM Documentation at Quotation: Secure complete carbon footprint data packages early in the procurement cycle.

Evaluate Low-Carbon Options: For projects with carbon targets, consider low-carbon seamless pipes from EAF mills.

Place H2 Orders Promptly: To secure production slots for Q3/Q4 delivery, place EN-standard and alloy steel pipe orders soon.

Monitor Trade Policies: Watch for any Section 232 or CBAM announcements.

Confirm Certification Needs: Verify if your project requires EN 10204 Type 3.1 or Type 3.2 documentation.

Sanonpipe: Your Partner for the European Market

As a one-stop steel pipe service provider, we are committed to becoming the most trusted partner in the global high-end industrial sector. For European buyers, we offer:

EN-Standard Inventory: EN 10210, EN 10219, and EN 10216-2 materials in popular grades (S355J2H, P235GH, P265GH), with full certifications.

Low-Carbon Supply Chain: Partnerships with EAF mills offering documented green power usage, high scrap ratios, and CBAM-compliant carbon footprint data.

Deep Inventory: Approximately 200,000 tons of seamless steel pipes (carbon and alloy), plus 10,000 tons of welded pipes and structural sections.

Documentation Support: Complete certification packages, including EN 10204 Type 3.1/3.2 certificates, MTC certificates, and carbon footprint reports.

Contact our team to discuss your Q3 2026 procurement strategy, request EN-standard pricing, or receive guidance on CBAM documentation and low-carbon steel pipe options.