OCTG case boon for JMC, Edgen: Moody’s

Aug 28, 2014 | 03:26 PM | Thorsten Schier

Tags  Moody's Investors Service, oil country tubular goods, OCTG, Edgen Group, JMC Steel Group, Thorsten Schier

NEW YORK — Anti-dumping and countervailing duties levied against imports of oil country tubular goods (OCTG) from six countries should bode well for the credit ratings of pipe and tube producer JMC Steel Group Inc. and distributor Edgen Group Inc., according to Moody’s Investors Service Inc.

"We estimate that an OCTG price increase of $100 per ton will raise (Chicago-based) JMC’s earnings before interest, taxes, depreciation and amortization (Ebitda) by about $20 million on an annualized basis, assuming stable material costs," vice president and senior analyst Michael Corelli said Aug. 28. "The ruling, coupled with JMC’s efforts to reduce head count and ramp up production at its more efficient operations, should narrow losses....





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