NEW YORK The
level of U.S. imports of oil country tubular good is unlikely
to change soon despite a recent trade case filed against nine
countries, senior executives of Tenaris SA said.
"We continue to see
levels of imports above 50 percent. We dont believe that
will change anytime soon," Tenaris North American area
manager Germán Curá said in an Aug. 2 earnings
remained at "a very high level" and, as such, the case is
expected to have little effect on prices in the third quarter,
"On the low-end
(commodity welded OCTG) component, I would say that I
dont think weve seen the end of (the price
decline)," Curá said.
Frances Vallourec SA also recently indicated it was too
early to gauge the impact of the trade case (
amm.com, July 31).
If the case is
successful, Luxembourg-based Tenaris said it expects little
pressure on markets outside of the United States. "There is no
other market like the United States. The size of the demand for
the low-end (OCTG products) is higher than in any other
market," Tenaris chairman and chief executive officer Paolo
However, Canada might
see an influx of OCTG, particularly from South Korea, if the
trade case is won, Curá said, citing such an outcome in
2009 after a complaint filed against Chinese OCTG producers
(amm.com, Aug. 30).
confident about its success in the North American market, even
with the large OCTG capacity additions planned.
Rocca called an
analysts estimate of 3 million tonnes in capacity
additions to the U.S. OCTG market "very high," as most plants
dont run at or reach maximum capacity. "Capacity will be
used to a rational level," he said.
necessary permits to begin construction of its $1.5-billion,
600,000-tonne seamless OCTG mill in Bay City, Texas, in July
and expects to begin ordering "key" equipment by October, Rocca
North American sales
totaled $986 million in the quarter, down 22.4 percent from
$1.27 billion a year earlier, due to the seasonal spring
breakup in Canada and a drop in orders from northern Mexico,
net income totaled $429.6 million during the quarter, down 5.6
percent from $455.3 million in the same year-ago period, on
sales that rose 1 percent to $2.83 billion.
Shipping volumes fell
2.5 percent year on year during the quarter to 963,000 tonnes,
with those of seamless material falling 3.4 percent to 677,000
tonnes and welded product edging 0.3 percent lower to 286,000