Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first quarter of the current year.
In the first quarter, TMK shipped 850,000 mt of steel pipes to customers, down 3.7 percent quarter on quarter, mainly due to weaker demand for welded pipe, primarily large diameter (LD) pipe. In the same period, shipments of seamless pipes increased by four percent quarter on quarter to 281,000 mt, driven by steady demand from oil and gas companies, while welded pipe shipments dropped by 23 percent quarter on quarter to 192,000 mt.
In the January-March period, TMK's oil country tubular good (OCTG) shipment volumes increased by 11.6 percent quarter on quarter to 426,000 mt, driven by an increase in both seamless and welded OCTG shipments on the back of higher drilling activity in Russia and in the US. TMK’s American division almost tripled its seamless OCTG shipments in the given quarter compared to the previous quarter.
In the current year, TMK expects high consumption of seamless OCTG and line pipe, with industrial pipe demand to increase in the Russian market and demand for LD pipe expected to remain low. According to TMK, the oil and gas industry in the US and Canada will demonstrate further recovery, with OCTG consumption in North America growing. Supported by the announced pricing increase, the company anticipates its North American business’ financials to grow considerably in the second half of the year, given that the steel price will not rise significantly. Meanwhile, TMK stated that the European market is showing signs of recovery and in this context it expects continued growth in seamless pipe consumption and phased price increases for its products in the second quarter.