According to the data issued by Russia's Ministry of Economic Development, in the first eight months of this year Russia registered a 39.2 percent increase in its pipe production to 5.672 million mt.
In particular, in the January-August period, Russia's output of electric-welded large diameter (LD) pipes increased by 71.9 percent, its production of electric-welded pipes, excluding LD pipes, went up by 26.1 percent, its production of welded pipes rose by 8.9 percent, production of seamless pipes saw an increase of 29.4 percent, output of casing pipes increased by 34.2 percent, production of drill pipes went up by 71.9 percent, while output of tubing increased by 13.8 percent, all compared to the same period last year.
"These data indicate that consumption of pipes in the oil and gas industry increased by two thirds year on year due to the construction of oil and gas projects," reads the ministry's statement.
In January-August 2010, Russia increased its steel pipe imports by 82.6 percent year on year to 611,500 mt, mainly due to increased supplies from CIS countries (up 60.6 percent to 411,300 mt), including from Ukraine (up 52.2 percent year on year to 340,300 mt). The share of imported pipes in the domestic market amounted to 12.1 percent, which is slightly above the annual average level for 2009, i.e., 10.8 percent.
Meanwhile, in January-July the country's pipe exports decreased by 40.8 percent year on year to 596,900 mt.
The domestic consumption of pipes in January-July (excluding stocks) increased by 81.8 percent year on year and by 6.8 percent compared to the same period of 2008, with pipemakers switching from foreign markets to satisfy the demand from the domestic market.