Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first nine months of the current year.
In the January-September period, TMK shipped 2.82 million mt of steel pipes to customers, representing a 10.3 percent increase compared to the same period of last year, due to growth in shipments across all types of tubular products except large diameter (LD) pipe. Shipments in the third quarter rose by five percent quarter on quarter to 1.01 million mt.
In the first nine months of the year, seamless pipe shipments went up by 13.1 percent year on year to 1.99 million mt, due to higher shipments of industrial pipe and OCTG. Shipments of seamless pipes in the third quarter declined by 5.3 percent quarter on quarter to 651,000 mt.
TMK's welded pipe shipments increased by 4.1 percent year on year in the first nine months to 825,000 mt, driven by increased demand for all types of products except LD pipe. The third quarter welded pipe shipments grew 30.7 percent compared to the second quarter, totaling 362,000 mt.
In the January-September period of the current year, TMK's oil country tubular good (OCTG) shipment volumes rose by 28.6 percent year on year to 1.31 million mt, while in the third quarter shipment volumes registered a 6.9 percent increase compared to the second quarter, rising to 456,000 mt, mainly due to growth at the company’s American and Middle East divisions.
Shipments of premium connections amounted to 583,000 joints in the first nine months of 2017, up 60.7 percent year on year, due to the strong demand for these products, with shipment volumes up 22 percent quarter on quarter in the third quarter this year.
TMK expects consumption of OCTG and seamless industrial pipe to remain high in the Russian market in the fourth quarter of this year. Taking into account its strong performance in the third quarter this year, TMK expects its American division to significantly improve its financial results for the second half of the current year. Meanwhile, TMK anticipates continued strong demand for industrial pipe in the European market, which will continue to support higher prices.