Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first quarter of the current year.
In the first quarter, TMK shipped 845,000 mt of steel pipes to customers, representing a 9.9 percent decrease quarter on quarter, mainly due to the continuing decline in shipments in the American division. In the same period, shipments of seamless pipes decreased by 8.1 percent quarter on quarter to 564,000 mt, while welded pipe shipments dropped by 13.4 percent quarter on quarter to 281,000 mt.
In the January-March period, TMK's oil country tubular good (OCTG) shipment volumes decreased by 19.6 percent quarter on quarter to 312,000 mt. This decline was due to lower shipments of welded OCTG pipe in the American division, as well as changes in the Russian division’s OCTG sales structure.
According to TMK, the Russian oil and gas pipe market will be flat in the second quarter of the current year. TMK expects to maintain current shipment volumes of OCTG and line pipe. In the United States, TMK expects that the demand for oil and gas pipes will remain weak due to further declines in drilling volumes, large inventories, and continued low-priced imports. The American pipe market is not expected to recover before the end of this year. Industrial pipe consumption in the European pipe market will be stable in the second quarter, with demand expected to increase slightly as the construction and repair season starts.