French steelmaker Vallourec said Wednesday in a press release reporting Q3 earnings that in the US, the rig count increased during Q3, rising 6 percent from Q2 and is up 17 since the start of the year. With oil drilling, particularly in the shale oil fields, continuing to increase, OCTG prices progressed moderately during the quarter. Additionally, an increase in drilling permits suggests that the rig count should continue to increase over the next quarter and OCTG demand is expected to remain at a high level entering into 2012.
Vallourec also said it was able to implement price increases announced in Q2 and Q3, and Vallourec's mills operated at full capacity in the US, and with the anticipation of a continued high level of demand, "OCTG sales are likely to remain at a high level during Q4 and entering into 2012."