Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first quarter of the current year.
In the first quarter, TMK shipped 995,000 mt of steel pipes to customers, representing an 18 percent decrease quarter on quarter, due to the lower operational performance of its American division. Shipments of seamless pipes decreased by 11 percent quarter on quarter to 619,000 mt, while welded pipe shipments dropped by 28 percent quarter on quarter to 376,000 mt
In the first quarter of the year, TMK's oil country tubular good (OCTG) shipment volumes decreased by 18 percent quarter on quarter to 425,000 mt, though, as stated by the company, this will not significantly affect TMK's profits as these products have lower margins.
According to TMK, in the first quarter of the current year, steel pipe demand in the Russian market rose by seven percent year on year. TMK expects demand for oil country tubular goods (OCTG) in the American market to deteriorate further in the first half of 2015, as the active rig count remains near record lows, while market players are destocking.