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 727,000 mt of steel pipes to customers, down seven percent quarter on quarter and five percent compared to the first quarter of 2019. The fall in steel pipe shipments was due to a decrease in seamless pipe shipments at both the Russian and European divisions, reflecting an unfavourable economic environment and oil price volatility. In the same period, shipments of seamless pipes fell by nine percent quarter on quarter and by ten percent year on year to 505,000 mt due to lower shipments of seamless OCTG pipe at the Russian division and weaker demand for industrial seamless pipe at the European division. Meanwhile, welded pipe shipments fell by one percent compared to the last quarter of the previous year and rose by eight percent year on year to 222,000 mt, owing to higher shipments of large diameter and industrial welded pipe at the Russian division.
TMK expects the overall demand for its products in both Russia and Europe to remain under pressure in the second quarter of the current year, due to the continued unfavourable macroeconomic environment and oil price volatility.