NASPD 2008 Summer Conference presenters expect strong US pipe market going forward

Wednesday, 18 June 2008 13:50:34 (GMT+3)   |  
       

The top names in the US pipe industry gathered in San Francisco last week for the National Association of Steel Pipe Distributors' (NASPD) 2008 Summer Conference. The sunny California weather matched the spirits of the conference-goers, as the consensus among the conference presenters and attendees seemed to be that the dynamics for the US pipe market will keep the industry tight for some time to come.

Presenters at the three-day event, held in the historic Fairmont Hotel, included Vipul Amin of The Carlyle Group; Carole Wink of Ancon Transportation; Roland Balkenende, commercial director of Tenaris Global Services; Dan O'Leary of Edgen Murray II LP; and economist Don Reynolds. The topics presented ranged from transportation to the outlook for pipe consumption, to the role of the financial markets, as well as the effects of the ongoing credit crunch in both pipe production and distribution.

Mr. Amin from The Carlyle Group - which has recently had a string of acquisitions in the North American tubular market - presented: "Financial Market Issues: Implications for Pipe & Tube." Mr. Amin told the audience that although the credit markets won't recover for at least another year, the steel pipe and tube industry will remain attractive for private equity buyers as long as acquisition targets exist.

Ms. Wink of Ancon presented: "The Ever Changing World of Transportation," which focused on the trucking industry's role in the steel business and the challenges that it faces.

Mr. Roland Balkende of Tenaris gave a very informative presentation entitled "The State of the Industry." Balkende told the conference-goers that data show a "rock solid" US natural gas demand going forward. As a result, he said that the drilling industry consensus is that activity will grow in the short term - which means more OCTG use and, consequently, more line pipe use. With worldwide steel demand also expected to grow in the foreseeable future, particularly from China, combined with the factors of low US pipe inventories from lack of imports, higher raw material costs, and the weak dollar, he expects US pipe prices to keep rising.

Dan O'Leary of Edgen Murray II LP presented: "Past, Present, and Future, a Distributor's Perspective," which focused on the stock market's role in the distribution market. Mr. O'Leary gave an informative and detailed history of the stock market's movement in correlation with major world events.

Last but not least, Mr. Don Reynolds presented: "Tectonic Plates of Change." Mr. Reynolds asserted that the emerging third-world spending power and the resulting growth of the world's middle class will continue driving the global economy for years to come. He did warn, however, that, as in the adage "what comes up must come down," the US' economic "Golden Age" may be coming to an end, and that foreclosure rates in the US will continue to accelerate.

In addition to the presentations, other highlights of the conference included a Hawaiian-style dinner as well as a cocktail party in the hotel's historic penthouse suite. Saturday's activities included round table discussions as well as a wine tasting tour.

All in all, the event was a great meeting of the industry's leading decision makers in a relaxing and elegant venue. Looking forward, NASPD events should continue to see smiling faces for some time to come, as the general consensus among the attendees and presenters was that despite the slow-growing US economy and the insecurity in the credit markets, the domestic pipe market will remain in a very strong position going forward due to the absence of imports, rising raw material costs, growth of the emerging economies, and thriving energy markets.


Similar articles

Local Chinese steel pipe prices mostly decline

28 Mar | Tube and Pipe

US OCTG exports up 26.8 percent in January

27 Mar | Steel News

India’s VSTL setting up greenfield steel pipe making unit in Odisha

27 Mar | Steel News

Japanese crude steel output down 3.8 percent in February from January

27 Mar | Steel News

India’s Welspun secures $62 million steel pipe supply contract in Saudi Arabia

26 Mar | Steel News

Some EU flat steel import quotas about to be exhausted near end of period

26 Mar | Steel News

Canada initiates review on line pipe from S. Korea

25 Mar | Steel News

India’s Welspun and Saudi Arabia’s Aramco terminate steel pipe supply contract

25 Mar | Steel News

US and Canadian rig counts both decline week-on-week

22 Mar | Steel News

US structural pipe and tube exports down 41.7 percent in January

22 Mar | Steel News