TMK: Higher pipe prices are inevitable

Friday, 11 June 2010 17:05:34 (GMT+2)

The rise in iron ore and coal prices entails the growth of prices for steel sheets and billets, which in turn is forcing pipe producers to increase their prices for tubular goods, offsetting in this way the growth in production costs, Konstantin Semerikov, senior vice president at TMK, Russia's largest oil and gas pipe producer, has said in an interview to Russian magazine Metal Supply and Sale.

"Prices for raw materials of our major suppliers are steadily growing. Thus, while setting prices for TMK's tubular goods, we have to take into account the rising trend of costs. Offsetting the raw material price increases, from Q2 2010 the prices for all oil and gas pipes have risen by 10-15 percent. In the second half of this year, we expect a further 10-15 percent growth in pipe prices. The pipe prices in the US follow the dynamics of the market," Mr. Semerikov said.
 
Last week the US media reported that, as of June 1 this year, TMK's US-based subsidiary TMK IPSCO increased by $100/mt its transaction prices for both electric-resistance welded (ERW) and seamless line pipe to an average $1,150-1,200/mt, on the back of improving demand, increased raw material costs and a dearth of foreign products.

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