According to Russian steel and pipe producer United Metallurgical Company (OMK), the consumption of large diameter (LD) pipes in Russia in the current year may drop by 30 percent year on year to 2 million mt.
At present, the total production capacity of Russian pipe companies TMK, OMK and ChTPZ Group and also of Ukrainian pipe producer Khartsyzsk Pipe Works is about 4.5-5.0 million mt of LD pipes per year. Thus, in 2011 production facilities will operate at only 40-50 percent capacity.