Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has stated that for the second half of the current year it foresees growth in the pipe market in Russia mainly due to higher consumption of large diameter (LD) pipes as a result of the commencement of Gazprom's Power of Siberia project.
Concerning the US, TMK expects commodity prices to further support robust drilling activity throughout 2014. As a result of the positive decision in the antidumping investigation on the restriction of oil country tubular good (OTGC) pipe imports to the US from a number of countries, the flow of imports and inventory levels should gradually decrease, which should positively influence the pricing environment.
The European pipe market is expected to remain largely unchanged in the second half of 2014.
In general, in the second half this year TMK expects a stronger set of results due to growing LD pipe sales, higher seamless pipe prices in Russia in line with stable raw material prices, as well as a gradual recovery in the US market.
