IPSCO to scale back pipe production

Canadian pipe manufacturer IPSCO announced this week that it plans to adjust downward its pipe and plate production and steel purchases in order to reduce built-up inventories. IPSCO, which currently operates six pipe-making facilities across western Canada and the US, states in its press release that the company has been operating most of its facilities at near-full capacity during this robust period for the pipe market, but will now scale back its production to allow IPSCO “to better realign its own inventory and accelerate planned maintenance programs.” Despite the scale back in production, the company expects its fourth quarter shipments to remain flat compared to third quarter shipments. The company did not specify the amount of tonnage to be taken off the market.