NEW YORK Vallourec SA
expects to produce 200,000 tonnes of small-diameter oil country
tubular goods (OCTG) at its new mill in Youngstown, Ohio, this
"For additional tonnage for
2013, we are pretty much in line with our announced ramp-up for
the two mills, and we confirmed the volumes for VSB (Vallourec
& Sumitomo Tubos do Brasil Ltda.) of 120,000 to 150,000
tonnes, and for V&M (in Youngstown) its an additional
200,000 tonnes that we have in our schedule for this year,"
chief operating officer Jean-Pierre Michel said during the
companys fourth-quarter earnings call.
The full annual capacity of the
Youngstown mill is 350,000 tonnes of seamless pipe.
A recent OCTG price increase by
Houston-based subsidiary Vallourec & Mannesmann USA Corp.
amm.com, Feb. 19) will only be effective for spot
tonnages, with most of the companys first-half deliveries
already committed under frame contracts, the company said.
"On these small volumes, we were
planning to increase prices on limited volumes for the second
quarter," Didier Hornet, managing director of the
companys OCTG division, said during the call, adding that
it was "a bit early to tell" whether the increase might lead to
higher prices for frame contract deliveries in the second
In terms of end markets, the
company believes U.S. drill rigs are at their lowest point for
the year, according to Hornet.