TMK on prospects for 2015

TMK is a major global manufacturer and supplier of steel pipes with production sites in Russia, Romania, Kazakhstan, the USA, Canada, the United Arab Emirates, Oman, and has established R&D centers in Houston (USA) and Russia. Recently, Pipe Metallurgical Company announced its prospects for the current year.

The market situation in the pipe market is highly dependent on world oil prices, which have a direct impact on the capital investments of oil and gas companies. For Russian enterprises, the situation is further complicated by the limited access to Western loans.

At current oil prices, the company expects pipe consumption in Russia to decrease slightly. However, major pipeline projects in Russia, such as Power of Siberia and the Southern Corridor, will enable TMK to increase supply and improve its product range in the large diameter welded pipe segment. In addition, a scientific and technical program of cooperation between TMK and Gazprom was signed, which is aimed at mastering the production of new products, expanding the range of import substitution.

In the US market, TMK expects demand for OCTG pipes to fall in proportion to the decrease in the number of drilling rigs. The company foresees a more significant decrease in demand in the first half of the year, with the possibility of a slight recovery in the second half of the year, which may be driven by an improvement in oil and gas prices. Consumer expectations in the pipe market in the 1st quarter of 2015 are also gloomy, but they are more optimistic regarding the 2nd quarter of 2015.