As we know, majority of usage of Steel Pipes & Tubes goes into Oil & Gas, E & P, and Construction & Infrastructural activities. Hence, for usage and demand of Steel Pipes & Tubes to increase, application industry should also experience growths. Hence, we need to understand dependence of steel pipes & tubes on various user industry.

To understand dependence of steel pipes & tubes, we do Regression Analysis, which is a tactical model to check relationship of one variable with other. Here, we will see how Steel Pipes are related with other variables. Relation of Steel Pipes & Tubes with GDP of country, with growth of infrastructural activity, etc.

Let’s check out the regression analysis of growth of Steel Pipes & Tubes Industry with other Independent variables as shown below:

Regression analysis of all the above Independent Variables do not depict any meaningful conclusions, have a look at yourself:

Hence, although user industry growth is important for Steel Pipes & Tubes demand, the regression analysis does not reveal so. Many combinations were tried out to understand the possible correlation of growth of crude steel with other independent factors. But no clear trend nor strong correlation were observed.

Let us say in future, we find a parameter/independent variable which is closely related to Steel Pipes & Tubes growth rate. This parameter will be important for us to track, as it will be majorly influencing growth in steel. But, it is just a parameter and there is no surety that growth in steel will act in same way in coming future. Hence, it is just a view or data which gives us possible hint in coming growth of steel production & demand. It is used to predict the possible demand for steel in future, a possible revenue growth driver, but no certainty.

Source: Find the link of Excel Sheet for all calculation relating to Regression Analysis.

Disclaimer: Views are personal and presented through independent research. By no means there is any stock advice. Also, presented content is for learning purpose only. I might be wrong in presenting data and inaccurate data, let me know if you find any discrepancies.