Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its production results for the first quarter of the current year.
In the given quarter, TMK shipped 1.022 million mt of pipes to customers, down three percent and eight percent year on year and quarter on quarter respectively. The drop in shipments was mainly due to lower demand for seamless and welded line pipe, as well as for large diameter pipe (LDP).
In the first quarter this year, TMK's seamless pipe shipments amounted to 626,000 mt, stable year on year but down three percent quarter on quarter.
TMK's welded pipe shipments in the reporting period fell by nine percent year on year to 396,000 mt. The LDP and welded line pipe segments both indicated a decline. Welded pipe shipments dropped by 16 percent quarter on quarter.
In the first quarter of the current year, TMK's oil country tubular good (OCTG) shipment volumes were stable quarter on quarter and were up 13 percent year on year, reaching 491,000 mt.
In the first quarter, volumes of large diameter pipe shipments from TMK's Russian division amounted to 77,000 mt, down 19 percent quarter on quarter. This decline was due to the completion of several pipeline projects in late 2013.
In the first three months this year, TMK shipped 193,000 premium connections, representing an 18 percent increase year on year but a four percent decrease quarter on quarter.
TMK expects demand for tubular products in 2014 in Russia to follow a slight downward trend due to the unstable macroeconomic environment, exchange rate volatility and uncertainty in commodity markets. Nevertheless, the company is planning to increase its shipments of seamless OCTG pipe, including those with premium connections.