Russia-based manufacturer TMK’s production of pipes fell by 5pc in 2019 to 3.8mn mt, from 4.01mn mt in 2018.
TMK is known as one of the world’s leading producers of tubular products for the oil and gas industry. The company anticipates domestic pipe consumption in Russia to remain stable in 2020 with higher demand for high tech products.
In 2019, shipments of seamless pipe were at 2.62mn mt and welded pipe at 1.176mn mt, down by 5pc from 2018. Performance of the company’s American division was weaker, which was partially offset by the performance of its Russian division.
In the Russian division, total pipe shipments increased by 5pc from the prior year with a 4pc rise in shipments of seamless OCTG pipe and a 56pc rise in large diameter pipe shipments.
In 2019, total OCTG shipments dropped by 11pc from 2018 and the shipments of premium threaded connections declined by 10pc.
TMK concluded the sale of IPSCO Tubulars, its American division to Tenaris in January. As per the stock purchase agreement signed on March 22, 2019, Tenaris has become an exclusive distributor of TMK’s OCTG and line pipe products in the United States and Canada from Jan 2, 2020. This step was taken in line with TMK’s strategic objective of reducing the company’s leverage on international assets and to ensure its stability.
In Oct-Dec 2019, the company’s total pipe shipments dropped by 8pc to 870,000mt amid lowering of shipments from its American division along with drop in welded pipe shipments from TMK’s Russian division.
Shipments of seamless pipe were down by 5pc to 621,000mt, welded pipe shipments decreased by 14pc to 249,000mt and
OCTG shipments declined by 10pc to 375,000mt, on decreased shipments at the American division.
In 2018, the company sold more than 8mn mt of pipes.