The global seamless steel pipe industry is experiencing significant order growth as 2025 enters its final quarter. With manufacturing schedules reaching full capacity and international shipping space continuing to tighten, we advise our clients to plan procurement strategies in advance to ensure timely project deliveries.

Industry Overview: Growing Demand and Supply Chain Pressure

The seamless pipe market continues to demonstrate steady growth, primarily driven by the energy sector's need for high-performance piping solutions. The cold-drawn seamless steel pipe market is projected to reach USD 85.6 billion in 2025, maintaining an annual growth rate of 4.2%. Current market challenges include:

Saturated Production Capacity: Major steel mills are operating at 92% capacity utilization, with average lead times extending to 45-60 days.

Intensified Shipping Pressure: Global container shipping capacity increased by 3.5% year-on-year, but demand growth reached 5.8%, causing freight rate volatility on key routes to rise to 18%.

Key Drivers: Sustained Energy and Infrastructure Investment

Demand for ASTM A106 Grade B and other seamless carbon steel pipes remains strong, particularly for oil and gas projects in the Middle East and Southeast Asia. Global energy infrastructure investment is expected to exceed USD 1.2 trillion in 2025, driving a 6.8% increase in demand for high-performance pipes.

International Export Trends: China's seamless pipe exports are forecast to surpass 6 million metric tons in 2025, with major shipments going to Saudi Arabia, Indonesia, UAE, and other Belt and Road Initiative countries.

Production Capacity Shifts: New steel mills in Vietnam and India have increased total Asian production capacity to 78.5 million metric tons.

Production and Logistics: Plan Early for Q4 Requirements

Current industry conditions show:

Tight Production Schedules: 85% of Q4 2025 capacity at major mills has been booked

Extended Lead Times: Standard product delivery periods have extended from 30 to 50 days

Shipping Uncertainty: Space guarantee rates on Trans-Pacific routes have dropped to 72%, with European route rates showing quarterly fluctuations of 12%

We recommend placing orders at least 8 weeks in advance and considering "pre-shipment inspection + bonded warehousing" models to shorten delivery cycles.

Market Outlook and Procurement Strategy

Industry analysis indicates:

Price Trends: Seamless pipe prices remained stable in Q3 2025, but logistics costs increased from 8% to 12% of total costs

Demand Structure: Demand for API 5L and ASTM A106 grade pipes in oil and gas sector grew 7.2% year-on-year

Supply Chain Restructuring: Nearshoring trends are strengthening, with production from Mexico and Turkey gaining importance

Our Capabilities and Call to Action

We supply high-quality seamless steel pipes including ASTM A106 Grade B and alloy steel pipes, offering:

Capacity Reservation: 15% emergency capacity reserved for long-term clients

Logistics Optimization: Annual space agreements with major shipping lines ensuring 95% space availability

Quality Assurance: Full product line certified to API 5L/ISO 3183 standards

We recommend clients:

Complete Q1 2026 procurement plans before November

Prefer FOB terms to mitigate logistics risks

Consider multimodal transport solutions