The Russian pipe producer TMK Group (TMK) has announced that in the first half of 2010 it saw a 54.9 percent year-on-year increase in its steel pipe shipments to 1.864 million mt, and expects the positive market trend to continue in the second half of the year.
Shipped steel pipe product |
Q2 2010 |
Q1 2010 |
Change q-o-q (%) |
H1 2010 |
H1 2009 |
Change y-o-y (%) |
Seamless steel pipe |
521,000 |
537,000 |
-2.9 |
1,058,000 |
765,000 |
+38.3 |
Welded steel pipe |
410,000 |
396,000 |
+3.5 |
805,000 |
437,000 |
+55.7 |
Total steel pipes |
931,000 |
933,000 |
-0.2 |
1,864,000 |
1,203,000 |
+ 54.9 |
Including OCTG |
366,000 |
363,000 |
+0.8 |
729,000 |
498,000 |
+46.3 |
US-based TMK IPSCO's steel pipe shipments increased by 20.4 percent quarter on quarter, with gas shale exposure continuing to dominate its business activity. Despite some weakness in natural gas markets, North American drilling activity and resulting pipe consumption continued to recover in the second quarter of the year. Capacity utilization at TMK IPSCO surpassed the 80 percent level.
Demand for premium connections continued to increase both in North America and Russia. In H1 2010, TMK shipped more than 219,000 premium connection joints, representing a 124 percent year-on-year increase.
TMK also continued to see robust demand in the welded large diameter steel pipe segment. Its large diameter order backlog remains strong and extends into the first half of 2011 from Gazprom's planned implementation of the Bovanenkovo-Ukhta, Pochinki-Gryazovets and Ukhta-Torzhok pipeline projects, as well as existing orders from Transneft and Lukoil, amongst others.
In addition, TMK saw an increase in demand for its industrial products, with its Q2 industrial steel pipe shipments rising by 17 percent quarter on quarter, due to increased shipments for the construction of nuclear reactors and other power generating facilities.
The Russian and CIS OCTG and line pipe market was essentially stable and demonstrated moderate growth in the first half of 2010. TMK is participating in Rosneft's Vankor development as well as in the Surgutneftegas and TNK-BP projects in Eastern Siberia, and continues to supply pipes to existing oil and gas operations in Western Siberia.
As a result of the strong market environment observed in the second quarter of 2010, TMK expects its EBITDA to slightly increase as compared to the first quarter.