Tenaris SA hopes to increase its market share if a U.S. trade
case filed against importers of oil country tubular goods
(OCTG) goes in favor of the domestic industry.
"Naturally, we are
looking at a case which is give or take accounting (for) about
25 percent of the size of the apparent demand. So it is a
substantial quantity, and when and if the case was to go the
industrys way, it is our expectation to ... perhaps
capture an important piece of that," Tenaris North
American-area manager Germán Curá said during a
Nov. 7 conference call on the companys third-quarter
America sales totaled $928 million for the three months ended
Sept. 30, down 26.3 percent from $1.26 billion a year earlier
amid lower pricing for commodity products.
"In North America our
sale(s) have declined over the past few quarters due to changes
in product mix and declining prices represented by the widely
used Pipe Logix index," Tenaris chairman and chief executive
officer Paolo Rocca said during the call. "The market continue
to be affected by aggressive import of less differentiated
products, but this should eventually slow down over time."
American volumes continue to be strong for the Luxembourg-based
pipe and tube maker due to increased drilling efficiencies.
"Now from a volume
perspective, we continue to see the market ... in a very solid
space of demand ... and we believe this is going to continue to
be so, because the view is that we dont really believe
that drilling efficiency has topped off," Curá said.
The company also
continues to advance its $1.5-billion, 600,000-tonne-per-year
seamless facility in Bay City, Texas (
amm.com, Sept. 10).
"Meanwhile, we are
making progress with our new mill in Bay City, for which we
began site preparation and earth work in September, and
recently concluded negotiations for the supply of the main
equipment," Rocca said during the call.
tube sales totaled 838,000 tonnes in the quarter, down 11.5
percent from 947,000 tonnes sold in the year-prior period, with
seamless sales falling 4.4 percent to 614,000 tonnes from
642,000 tonnes and welded sales dropping 26.6 percent to
224,000 tonnes from 305,000 tonnes in the same comparison.
The company recorded
net income of $314.3 million for the period, a 27.6-percent
decrease from $434.1 million a year ago on sales that dipped
9.1 percent to $2.42 billion.