Prices for oil and gas OCTG pipes in the U.S. remained stable during the same period

Regional pipe markets are showing mixed trends, reflecting the specific characteristics of pipe products. As of the end of March, prices for welded pipes in Turkey, which are largely intended for construction, rose by $60/t to $655/t, while prices for oil and gas OCTG pipes in the U.S. remained stable.

Global market conditions

According to the International Tube Association (ITA), global tube production grew by 10% year-over-year in 2025, reaching 177.9 million tons. The largest growth (+37% year-over-year, to 31 million tons) was recorded in the segment of tubes with a diameter exceeding 16 inches. The oil and gas sector accounts for 51% of demand, followed by the automotive and construction sectors. Due to the dominance of welded pipes (73% of the market), the industry is heavily dependent on hot-rolled steel prices.

Market prospects remain positive thanks to new pipeline projects, the development of hydrogen infrastructure, carbon capture projects, and industrial growth in India, China, and the Middle East.

In Europe, high energy prices are squeezing margins, raising the risk of production relocations. EUROFER expects only a gradual recovery in the sector (year-on-year): 0.2% in 2025, followed by 0.8% in 2026 and 1.5% in 2027. Going forward, growth in pipe consumption will increasingly depend on the construction sector, while demand from the energy and machinery sectors will remain subdued.

United States

Optimism is growing in the U.S. oil and gas pipe market amid rising oil prices; however, this has not yet led to higher pipe prices. The average price of OCTG pipes on North America FOB terms stabilized at $2,053/ton in March after falling by $11/ton in February. This situation is due to the oil sector adopting a wait-and-see stance amid rising prices, which are viewed as a temporary phenomenon.

Currently, OCTG pipe prices are moving independently of oil prices: pipe quotations remain stable despite the sharp rise in oil prices following the outbreak of the conflict in Iran and the blockade of the Strait of Hormuz. In March, the price of WTI rose 56% month-over-month to $101.6 per barrel, following a 5.7% month-over-month increase in February.

Amid cautious market optimism, the number of drilling rigs in the U.S. is declining, remaining at its lowest level since November 2021. According to Baker Hughes, the number of oil and gas rigs in the U.S., which is an early indicator of future production, stood at 543 at the end of March, down by seven units from the previous month. The total number of rigs in the country is 49 units lower than during the same period a year earlier.

If the period of high oil prices drags on for several months or years, one result could be a boost to oil and gas production within the U.S. On the other hand, the U.S. market has a significant number of drilled but uncompleted wells that could be rapidly brought online under favorable market conditions.

It is likely that oil companies’ wait-and-see stance is coming to an end. In April, U.S. oil exports could set a new record, as Asian countries urgently seek alternatives to Middle Eastern supplies, which have been cut off due to the crisis in the Strait of Hormuz. According to Kpler estimates, U.S. crude oil exports will rise by nearly a third in April—to 5.2 million barrels per day, up from 3.9 million barrels per day in March. The main driver is demand from Asia, which could jump by 82% to 2.5 million barrels per day.

Turkey

Quotations for Turkish welded pipes rose significantly in the second half of March, despite the uncertainty caused by the war in the region. According to Kallanish, prices for welded pipes jumped by $60 last month to $655/t (Turkey FOB).

This was driven by increased demand from European buyers, rising production costs for hot-rolled steel, and a reduction in supply. Specifically, average prices for hot-rolled coil (HRC) on Turkey FOB terms rose by $23 in March to $608/mt.

In the near term, prices will remain at high levels. According to Kallanish, some buyers are rushing to purchase products due to fears of further price and freight cost increases, even disregarding costs associated with CBAM and quotas.

It is important to note that the price increase is occurring against a backdrop of growing pessimism in the country’s construction sector. Turkey’s construction confidence index fell by 3.9 points to 80.6 in March, continuing the decline observed in February. The construction activity index for the past three months decreased by 8.6 points to 86.4 in March. An index below 100 indicates pessimistic expectations.