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 1.058 million mt of pipes to customers, almost unchanged from the shipment volumes in both the first and fourth quarters last year. A slight quarter-on-quarter decrease was triggered by falling demand for industrial welded pipes, which was, however, largely offset by growth in welded line pipe and OCTG shipments.
In the first quarter this year, TMK's seamless pipe shipments fell by 1.2 percent year on year and by 1.9 percent quarter on quarter to 625,000 mt. The quarter-on-quarter decrease was largely due to the reduction in the American division's shipments in this segment.
TMK's welded pipe shipments rose by 2.8 percent year on year in the first quarter this year, reaching 433,000 mt, driven by the increase in demand for large diameter pipe (LDP) and line pipe from Russian consumers, with no substantial quarter-on-quarter change.
In the first quarter of the current year, TMK's oil country tubular good (OCTG) shipment volumes rose to 434,000 mt, up 3.1 percent quarter on quarter but down 2.5 percent year on year.
Volumes of large diameter pipe shipments from TMK's Russian division rose by six percent year on year and by 2.4 percent quarter on quarter, driven both by TMK's involvement in supplies for the construction of the Russian onshore section of the South Stream pipeline and by shipments to CIS countries.
In the first three months of 2013, TMK shipped 163,000 premium connections, representing an 18.3 percent increase year on year and a 14 percent increase quarter on quarter.
TMK confirms the earlier announced expectations that its Russian division will continue to see strong demand for OCTG and line pipe in 2013 as Russian oil and gas players fulfill their production plans. The LDP segment is also expected to grow. The company also maintains its positive long-term US market outlook. At the same time, the company believes that no noticeable upturn in the European economy will be seen before the end of 2013. In general, TMK confirms its cautiously positive outlook for the current year and expects 2013 shipments to be not less than in 2012.