Copying and distributing are prohibited without permission of the publisher
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

OCTG import levels won’t change soon: Tenaris

Keywords: Tags  Tenaris, quarterly earnings, Paolo Rocca, Germán Curá, OCTG, oil country tubular goods, OCTG imports, OCTG prices Thorsten Schier

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 don’t believe that will change anytime soon," Tenaris’ North American area manager Germán Curá said in an Aug. 2 earnings call.

Inventories also remained at "a very high level" and, as such, the case is expected to have little effect on prices in the third quarter, he said.

"On the low-end (commodity welded OCTG) component, I would say that I don’t think we’ve seen the end of (the price decline)," Curá said.

Executives from France’s Vallourec SA also recently indicated it was too early to gauge the impact of the trade case (, 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 Rocca said.

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 (, Aug. 30).

Tenaris remains confident about its success in the North American market, even with the large OCTG capacity additions planned.

Rocca called an analyst’s estimate of 3 million tonnes in capacity additions to the U.S. OCTG market "very high," as most plants don’t run at or reach maximum capacity. "Capacity will be used to a rational level," he said.

Tenaris received 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 said.

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, Tenaris said.

Tenaris’ overall 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 tonnes.

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Latest Pricing Trends