Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first half of the current year.
In the first half of the year, TMK shipped 1.8 million mt of steel pipes, increasing by 4.1 percent year on year, due to higher sales of welded and seamless OCTG driven by strong demand in the Russian and North American markets. In particular, in the first half this year the company’s seamless pipe shipments rose by 16.9 percent to 1.34 million mt and its welded pipe shipments decreased by 21 percent to 462,000 mt, both year on year.
In the first six months this year, TMK's oil country tubular good (OCTG) shipment volumes increased by 32.1 percent to 852,000 mt compared to the same period of the previous year.
According to TMK’s statement, it expects consumption of seamless OCTG and industrial pipe to remain high in the Russian market throughout this year, though the large diameter (LD) pipe market will remain relatively subdued due to the continuing decline in demand and stiffer competition.
The company stated that the oil and gas industry in the United States and Canada is expected to show further recovery. The North American market has accepted stronger pricing by the American division, with oil and gas companies further increasing the volumes of pipe purchases despite oil price volatility. TMK expects TMK IPSCO, its Texas-based subsidiary, to further improve its financial performance in third and fourth quarters of the current year.
Meanwhile, the company anticipates stable demand for industrial pipe in the European market.