Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first nine months of the current year.
In the January-September period, TMK shipped 2.55 million mt of steel pipes to customers, representing a 12.8 percent decrease compared to the same period of last year, due to lower welded pipe sales. Shipments in the third quarter fell by 7.7 percent quarter on quarter to 822,000 mt.
In the first nine months of the year, seamless pipe shipments decreased by 1.9 percent year on year to 1.76 million mt. Shipments of seamless pipes in the third quarter increased by 4.7 percent quarter on quarter to 614,000 mt.
TMK's welded pipe shipments dropped by 30.2 percent year on year in the first nine months to 793,000 mt, mainly due to lower shipments of welded line pipe and welded industrial pipe in the Russian and North American markets. The third quarter welded pipe shipments were down by 31.6 percent compared to the second quarter, totaling 208,000 mt.
In the January-September period of the current year, TMK's oil country tubular good (OCTG) shipment volumes decreased by 6.6 percent year on year to 1.019 million mt, while in the third quarter shipment volumes registered a 12.3 percent increase compared to the second quarter, rising to 374,000 mt.
Shipments of premium connections amounted to 363,000 joints in the first nine months of 2016, down 24.7 percent year on year, with shipment volumes up 32 percent quarter on quarter in the third quarter this year. The decrease in the first nine months of this year in shipments of premium products was due to relatively low shipments of premium connections in the first half of the current year as complex hydrocarbon exploration and production projects were suspended in Russia and North America.
According to TMK, in the fourth quarter of this year, demand for OCTG will grow due to the start of the procurement season for tubular products at Russian oil and gas companies. Following a slowdown in the implementation of pipeline projects, large diameter pipe (LDP) shipments will continue to decline. Overall, TMK expects a marginal year-on-year decline in shipments for the full year of 2016.