Russia’s steel pipe consumption reaches pre-crisis levels, output up in 2010

According to the data issued by Russia's Ministry of Economic Development, in 2010 Russia registered a 35.8 percent year-on-year increase in its steel pipe production to 9.149 million mt, with all  major pipemakers seeing growth in output. As of January 2010 the country's pipe segment returned to the pre-crisis levels of domestic consumption, showing steady growth.
 
In particular, in 2010, Russia's output of electric-welded large diameter (LD) pipes increased by 58.3 percent, its production of electric-welded pipes, excluding LD pipes, went up by 30.7 percent, its production of welded pipes went down by 11.6 percent, production of seamless pipes saw an increase of 24 percent, output of casing pipes increased by 24.4 percent, production of drill pipes went up by 55 percent, while output of tubing increased by 11.4 percent, all compared to the same period last year.
 
These data indicate that the steel pipe consumption of the Russian oil and gas industry in 2010 increased by more than 50 percent year on year, on the back of the construction of oil and gas projects.
 
In January-November 2010, Russia's steel pipe exports decreased by 36.3 percent year on year to 936,100 mt. The ministry noted that during the period in question Russia's steel pipe imports significantly exceeded its steel pipe exports, as domestic consumption of pipes in January-November (excluding stocks) sharply increased by 70.1 percent year on year, with pipemakers switching from foreign markets to satisfy demand from the domestic market.

Russia's steel pipe imports increased in January-November 2010 by 139.7 percent year on year to 1.313 million mt, including 642,200 mt of steel pipes from CIS countries - up 69.8 percent, and 670,600 mt of steel pipes from non-CIS countries - up four times year on year. The share of imported steel pipes in the domestic market amounted to 15.3 percent in 2010 (10.8 percent in 2009, 17 percent in 2008), of which 41 percent were imported from Ukraine (61 percent in 2009).