The Russian pipe producer TMK Group (TMK) has issued its production data for the first quarter of 2009.
According to its release, in the first three months of 2009, the company reduced its total shipments of pipes by 17.8 percent year on year to 581,000 metric tons, including 402,000 mt of seamless pipes - down 17.1 percent, and 179,000 mt of welded pipes - down 19.7 percent year on year. However, TMK increased its deliveries of value-added seamless OCTG to the oil and gas sectors by 6.3 percent to 252,000 mt, due to its strategic relationships with Russian oil and gas majors.
The first quarter decline was due to the fall in overall pipe demand, in turn primarily caused by the weak consumption of industrial pipes. Overall Russian pipe consumption in the first quarter decreased by 33 percent year on year.
In the first three months of the year, TMK increased its shipments of premium connections by 28.3 percent year on year to 29,400 mt, on the back of its continuing development and marketing of its proprietary premium connection technology.
In the second quarter of 2009, TMK expects its shipment volumes of pipes to pick up, as it has improved considerably its product range by commissioning new production capacities in the fourth quarter of 2008, including Tagmet's seamless PQF mill, Volzhsky's new longitudinal large-diameter welded mill, and Seversky's new electric arc furnace. In addition, TMK has continued to expand its finishing capacity with the launch of new heat treatment lines at its Volzhsky, Sinarsky and Tagmet subsidiaries, while it has also brought on line two new heat treatment plants at TMK IPSCO.