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Too early to gauge OCTG case: Vallourec

Keywords: Tags  Vallourec, OCTG, oil country tubular goods, second quarter 2013, Philippe Crouzet, Didier Hornet, raw steel, billet Thorsten Schier

NEW YORK — It is too early to gauge the impact on the domestic market of the recently filed oil country tubular goods (OCTG) trade case against nine countries, according to executives from Vallourec SA.

“It is a bit early to tell what will be the decision and what will be the impact on the market,” said Didier Hornet, managing director of the company’s OCTG division.

Vallourec said pricing in the U.S. market was flat during its second quarter compared with the first quarter but down from the same period a year ago, with the North American contribution to the company’s bottom line below expectations even as volumes ticked up during the quarter due to the ramp-up of its new OCTG mill in Youngstown, Ohio.

Vallourec’s North American sales in the first half stood at €686 million ($909.8 million), down 2.6 percent from €704 million in the same period a year ago as shale gas drilling activity in the United States has not yet recovered, according to a company presentation.

The company can produce 730,000 tonnes of raw steel and 650,000 tonnes of billet for its own use domestically, meaning it will be self-sufficient in 2013 but will have to look for outside billet supply next year, according to chairman Philippe Crouzet.

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