OCTG overcapacity worries overblown: execs

Feb 06, 2013 | 02:50 PM | Thorsten Schier

Tags  OCTG, overcapacity, Barry Zekelman, Robert Mandel, Don Baysal, Welded Tube of Canada, JMC, Seba Thorsten Schier

NEW YORK — The steel industry’s worries about significant overcapacity in the oil country tubular goods (OCTG) market might be overdone, as announced expansions and new projects will displace older capacity, according to top industry executives.

"It’s efficient capacity. It displaces old, inefficient mills that should be dead and gone. It’s capacity that services our customer base in the way they need to be serviced—with quicker deliveries, with better products, with heavier products, with lighter gauges," Barry Zekelman, executive chairman of Chicago-based JMC Steel Group Inc., said during a panel discussion at AMM’s sixth annual Steel Tube and Pipe Conference in Houston, adding that the capacity additions will displace "lower-hanging fruit." ....

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