NEW YORK OAO
TMK, the Russian parent company of North American pipe and tube
maker TMK Ipsco, expects U.S. pricing for oil country tubular
goods (OCTG) to improve late this year.
"TMK expects the
challenging pricing environment to continue through the end of
the year as import inventories continue to apply downward
pressure on prices," the company said. "The positive
preliminary decision in the OCTG trade case announced Aug. 16
and subsequent price increases are expected to begin to be
reflected in improving transaction prices in the fourth quarter
and carry over into the first quarter of 2014."
However, TMK also
noted that the "latest market reports show OCTG import volumes
have not significantly changed since the filing of the trade
case against nine countries" in early July.
The company shipped
848,000 tonnes in North America during the first nine months of
this year, up 1.4 percent from the same period last year.
Third-quarter shipments of 294,000 tonnes were "slightly above"
the second quarter.
Despite a lower drill
rig count in the quarter compared with the same period last
year, OCTG consumption remained relatively robust due to
improved drilling efficiencies. "The trend of improving
drilling efficiencies continued as operators drilled more wells
in less time and at greater depths," the company said.
shipments totaled 1.06 million tonnes in the third quarter,
down 2 percent from 1.08 million tonnes in the second
of 3.2 million tonnes were up 1.7 percent from the first nine
months of last year. Seamless shipments fell 2.8 percent to
1.81 million tonnes but welded shipments climbed 8.3 percent to
1.39 million tonnes in the same comparison.
The companys OCTG sales rose 4 percent to 1.34 million
tonnes in the first nine months of the year from 1.29 million
tonnes last year.